Transparent Financial Systems will be rolling out a new service called Xand Alpha, which will come with confidential transactions functionality, according to a March 25 company blog post.

Transparent has developed a confidential transaction system based on field-proven cryptography. According to the message, this will allow users to protect their identity and transaction details while preserving “public verification” of the ledger.

The company said that with advances in blockchain technology, anyone can keep a full copy of every transaction to verify its validity, providing more transparency in a financial product. However, companies using a blockchain have a potential downside, as they publish their accounting documents.

The blog noted that businesses are used to keeping financial transactions private. As such, exposing these transactions can reveal information about a company’s suppliers, trading partners, volumes, and sales and trading patterns, which could be a downside.

Transparency said there are modern tools that can help address these shortcomings, such as zero-knowledge proofs to allow knowledge to be proven without revealing it, or homomorphic encryption schemes to allow computations to be performed on unknown numbers.

This sort of thing can add more transparency, and Transparent has adopted some of these techniques for the Xand network. The company said Xand’s design “helps facilitate compliance” and always allows users to know the counterparties to any transaction in which they are involved.

PYMNTS reported that the pandemic-spurred digital shift has prompted many consumers to look for new payment alternatives when shopping online, such as buy now, pay later (BNPL) options and mobile wallets.

Read more: Why Identity Verification and Fraud Protection Are Critical to Alternative Payments Growth

However, digital identity verification has also become an issue as it has increased, as has BNPL fraud.

Identity verification is becoming a challenge due to consumers’ need for convenience and the desire for transactions to be transparent and easy – usually in the form of alternative payment methods, where full details are available and the user does not just click “buy”.

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NEW PYMNTS DATA: 57% OF CONSUMERS PREFER ADVANCED IDENTITY VERIFICATION AFTER TRIING IT

On:Fifty-seven percent of consumers who used advanced identity verification methods such as voice recognition when contacting customer service say they would do it again. The Consumer Authentication Experiences report surveyed nearly 3,800 US consumers to find out how delivering innovative verification experiences helps businesses deliver superior customer service across all channels.

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