Privacy-preserving analytics for the securitization market: a zero-knowledge distributed ledger technology application
Abstract A zero-knowledge proof or protocol is a cryptographic technique for verifying private data without revealing it in its clear form. In this paper, we evaluate the potential for zero-knowledge distributed ledger technology to alleviate asymmetry of information in the asset-backed securitizat...
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| Format: | Article |
| Language: | English |
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Springer Berlin Heidelberg
2021
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| Online Access: | https://hdl.handle.net/1721.1/131728 |
| _version_ | 1826201637598789632 |
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| author | Meralli, Sophie |
| author2 | Massachusetts Institute of Technology. Media Laboratory |
| author_facet | Massachusetts Institute of Technology. Media Laboratory Meralli, Sophie |
| author_sort | Meralli, Sophie |
| collection | MIT |
| description | Abstract
A zero-knowledge proof or protocol is a cryptographic technique for verifying private data without revealing it in its clear form. In this paper, we evaluate the potential for zero-knowledge distributed ledger technology to alleviate asymmetry of information in the asset-backed securitization market. To frame this inquiry, we conducted market data analyses, a review of prior literature, stakeholder interviews with investors, originators and security issuers and collaboration with blockchain engineers and researchers. We introduce a new system which could enable all market participants in the securitization lifecycle (e.g. investors, rating agencies, regulators and security issuers) to interact on a unique decentralized platform while maintaining the privacy of loan-level data, therefore providing the industry with timely analytics and performance data. Our platform is powered by zkLedger (Narula et al. 2018), a zero-knowledge protocol developed by the MIT Media Lab and the first system that enables participants of a distributed ledger to run publicly verifiable analytics on masked data. |
| first_indexed | 2024-09-23T11:54:28Z |
| format | Article |
| id | mit-1721.1/131728 |
| institution | Massachusetts Institute of Technology |
| language | English |
| last_indexed | 2024-09-23T11:54:28Z |
| publishDate | 2021 |
| publisher | Springer Berlin Heidelberg |
| record_format | dspace |
| spelling | mit-1721.1/1317282023-03-01T15:31:49Z Privacy-preserving analytics for the securitization market: a zero-knowledge distributed ledger technology application Meralli, Sophie Massachusetts Institute of Technology. Media Laboratory Abstract A zero-knowledge proof or protocol is a cryptographic technique for verifying private data without revealing it in its clear form. In this paper, we evaluate the potential for zero-knowledge distributed ledger technology to alleviate asymmetry of information in the asset-backed securitization market. To frame this inquiry, we conducted market data analyses, a review of prior literature, stakeholder interviews with investors, originators and security issuers and collaboration with blockchain engineers and researchers. We introduce a new system which could enable all market participants in the securitization lifecycle (e.g. investors, rating agencies, regulators and security issuers) to interact on a unique decentralized platform while maintaining the privacy of loan-level data, therefore providing the industry with timely analytics and performance data. Our platform is powered by zkLedger (Narula et al. 2018), a zero-knowledge protocol developed by the MIT Media Lab and the first system that enables participants of a distributed ledger to run publicly verifiable analytics on masked data. 2021-09-20T17:30:00Z 2021-09-20T17:30:00Z 2020-01-25 2020-06-26T13:28:15Z Article http://purl.org/eprint/type/JournalArticle https://hdl.handle.net/1721.1/131728 Financial Innovation. 2020 Jan 25;6(1):7 PUBLISHER_CC en https://doi.org/10.1186/s40854-020-0172-y Creative Commons Attribution https://creativecommons.org/licenses/by/4.0/ The Author(s) application/pdf Springer Berlin Heidelberg Springer Berlin Heidelberg |
| spellingShingle | Meralli, Sophie Privacy-preserving analytics for the securitization market: a zero-knowledge distributed ledger technology application |
| title | Privacy-preserving analytics for the securitization market: a zero-knowledge distributed ledger technology application |
| title_full | Privacy-preserving analytics for the securitization market: a zero-knowledge distributed ledger technology application |
| title_fullStr | Privacy-preserving analytics for the securitization market: a zero-knowledge distributed ledger technology application |
| title_full_unstemmed | Privacy-preserving analytics for the securitization market: a zero-knowledge distributed ledger technology application |
| title_short | Privacy-preserving analytics for the securitization market: a zero-knowledge distributed ledger technology application |
| title_sort | privacy preserving analytics for the securitization market a zero knowledge distributed ledger technology application |
| url | https://hdl.handle.net/1721.1/131728 |
| work_keys_str_mv | AT merallisophie privacypreservinganalyticsforthesecuritizationmarketazeroknowledgedistributedledgertechnologyapplication |