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In volatile economic climates, investing can feel like a high-risk gamble. Even keeping money in a savings account doesn’t protect you from the impacts of inflation, as your interest rate struggles to keep up with the devaluation of currency. To combat the effects of inflation, many are turning to a kind of cryptocurrency called stablecoins, which are tied to a specific fiat currency that is less volatile than an investor’s native country. But despite the potential benefits, many investors are turned off by the complexity and questionable security of crypto.
That’s what zkp2p aims to address. Developed under P2P Labs, zkp2p is a peer-to-peer on-ramp and off-ramp solution (a service that converts fiat to crypto and vice versa) that uses the cryptographic technique of zero-knowledge proofs to simplify and secure the currency exchange process. With a focus on stable cryptocurrencies, this initiative provides people in high-inflation economies with accessible investing tools to protect their assets.
Launched just three months ago, zkp2p seeks to help a global audience exchange their funds and insulate themselves from volatile inflation. Find out how zkp2p’s user-friendly interface and focus on stablecoins make crypto investing approachable and profitable to everyone.
The vision of Sachin Kumar and P2P Labs
Sachin Kumar, the man behind zkp2p, began his career by interning for Set Labs, a notable company in decentralized finance and blockchain technology based in San Francisco, California. It was there that he got a primer on crypto technology, leading to a wide portfolio of blockchain-related projects. Later, looking to create his own startup, he partnered with Alex Soong to form P2P Labs.
One of the company’s first projects focused on tackling issues present in most on-ramping systems. Sachin noticed that many existing platforms were not globally accessible, charged high gas fees, had slow transaction speeds, and lacked reliable verification features — creating a high barrier to entry for many potential users who didn’t have the appropriate tools or knowledge.
With this in mind, Sachin and P2P Labs set out to build a user-friendly on-ramping application. After presenting a prototype for zkp2p, P2P Labs received a grant from the Ethereum Foundation to continue developing the platform, which was introduced into the market three months ago.
Safe and profitable investments with zkp2p
zkp2p makes fiat-to-crypto exchange simpler and safer by utilizing zero-knowledge proofs (ZKPs). This technique allows two parties to prove statements to each other without disclosing specific data or information. It’s commonly used to allow users to prove their identities without providing any sensitive information, such as Social Security numbers. In the case of on-ramping and off-ramping processes, ZKPs use smart contracts to validate exchange transactions without exposing payment details to the rest of the blockchain, securing user privacy and eliminating the need for additional intermediaries.
To do this, zkp2p links an Ethereum address with an off-chain payment service like Venmo, where users can create a crypto order and make an off-chain payment that matches the established exchange rate set by another user. Users then perform the payment and share the confirmation data to a zkp2p smart contract. Upon approval, users receive the equivalent amount of cryptocurrency.
zkp2p currently only supports USDC, a stablecoin pegged to the US dollar. Stablecoins like USDC serve as a bridge between fiat and crypto due to their value being tied to a regulated government-issued currency, usually at a 1:1 ratio.
As a result, zkp2p becomes appealing to people living in high-inflation regions (such as Latin America or Eastern Europe) who are looking to mitigate the volatile conditions of their local economy. By investing in USDC, users can safeguard the value of their funds from devaluation and earn interest in parallel to one of the most globally recognized fiat currencies. Additionally, the transparent nature of the blockchain allows them to track the progress of their investments and withdraw their funds at any time.
The future of zkp2p
zkp2p has already gained traction in many vulnerable markets around the globe. Recently, the platform added support for coins from India and Turkey to great success. Its developers are working on adding more fiat and cryptocurrencies to their platform, and they’re openly collaborating with fellow tech enthusiasts through their public GitHub repository.
Sachin and the zkp2p team envision the app becoming a global network where users can securely store their assets. By providing accessible tools and tapping into new markets, zkp2p is making it easier for people worldwide to protect their investments and engage in the crypto world.
