As an aftermath of the XRPL Zone conference in Paris, an important infrastructure update has taken place: the XRP network has integrated Boundless technology, which operates on zero-knowledge proofs (ZKP). Put simply, this adds a privacy layer to XRP Ledger tokens that did not exist before.
XRPL Commons and Boundless confirmed that developers can now create “hidden” smart contracts and escrow accounts on the XRPL network.
How XRP Ledger is hiding transaction data with its new ZK-proof update
Previously, all transactions on XRP Ledger were fully transparent. Anyone could see the amount, sender and recipient. For regular users this is acceptable, but for large companies and banks it is a problem, as they cannot disclose commercial secrets or balances publicly.
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Now it is possible to transfer stablecoins, such as RLUSD, in a way in which transaction details are hidden from the public, while still being verified by the network for validity.
XRPL gets on chain privacy via ZKP: Introducing @boundless_xyz Boundless on XRPL
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Moreover, a full-fledged zkVM virtual machine has been introduced, which now allows complex computations to be performed off-chain, while only a small cryptographic proof that everything executed correctly is submitted to the main XRP Ledger.
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Still, despite the added privacy, the technology enables “blind” verification processes such as KYC and AML. This means a bank can confirm that a user is not on sanctions lists without revealing personal data to the entire network.
The team is now said to be working on Smart Vaults, which will be the next stage of the upgrade.
This is not a “killer” of other networks but a planned expansion of XRPL’s capabilities. The blockchain is now suitable for use cases where confidentiality is required, such as interbank transfers or corporate treasury management, without unnecessary public exposure.
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