US-based Cryptographic settlement start-up Transparent has launched a new business-to-business (B2B) payment system to facilitate confidential transactions.
Dubbed Xand Alpha, the new system is designed to enable users to protect their identity and transaction details while safeguarding the ‘public auditability’ of the ledger.
The solution leverages a combination of homomorphic encryption schemes as well as zero-knowledge proofs techniques.
Zero-knowledge proofs allow attesting the knowledge of information without disclosing it while homomorphic encryption schemes allow performing math on numbers that are not known.
Transparent said in a statement: “The identities of the transacting parties and the amounts involved are kept private. However, unlike some confidential systems, Xand’s design helps to facilitate compliance.”
Xand Alpha is designed to ensure that users always know counterparties to the transaction they are participating in.
Furthermore, it allows users to offer proof to third parties about the hidden details of transactions. The third-party will be able to verify the details by analysing the shared ledger.
In 2020, Transparent raised $14m in Series A financing to support product development and drive its expansion into other countries.
It followed an $8m financing from Vulcan Capital in July 2018.
Other developments in B2B payment space
Last month, B2B payments firm TreviPay acquired technology firm Baton Financial Services to enhance its technical resources to support the B2B payment space.
The same month, Payments network EMQ launched its multi-currency B2B payment offerings in China in a bid to offer its global enterprise customers direct access to the country’s market.
The same week, the Latin American business-to-business (B2B) payments platform Flexio secured $3m to bolster its offerings to help businesses automate bill payments and invoicing.