Coinbase launches open-source cryptography library

Cryptocurrencies like Bitcoin and Ethereum have rapidly transformed from a niche area of interest to a multi-billion pound asset class. These cryptocurrencies, and many others, are built on the back of cryptography, an extremely complex method of securing communications. Thanks to innovations in cryptography, cryptocurrencies are able to validate and verify transactions on the blockchain, enabling the massive growth of this technology.

One of the largest cryptocurrency exchanges by trading volume, Coinbase, recently announced they have created a cryptographic library called Kryptology. The aim of this resource is to provide blockchain developers access to tools that support them in establishing new innovations in the crypto space.

“The library provides developers with a toolbox of secure, audited, and easy-to-use APIs. Kryptology is designed to be misuse-resistant (i.e., “hard to screw up”), so developers can focus on what they do best,” explains Coinbase in a blog post. “We hope this translates to more projects that build and grow the crypto ecosystem.”

Coinbase hope that opening up access to the Kryptology library will foster an innovative environment for developers to make new cryptography for a wide range of applications. A major area where the cryptocurrency exchange expects significant innovation to happen in the near future is zero-Knowledge proofs (ZKPs). These ideas provide ways to improve privacy in cryptocurrencies, as well as for a wider range of identity applications.

With a central benefit of cryptocurrencies for many users being the privacy they offer, the advancements made in further encrypting blockchain data and allowing transactions to be validated without revealing personal identity is a major step forward in the sector.

However, some governments and law enforcement agencies are concerned that the ability to transact with completely private personal data could open up ways to perform illegal activities with safety.