Ethereum Foundation Unveils zkAPI, a Private Payment System for API Users
The Ethereum Foundation has launched a new payment system called zkAPI, designed to enable private metered API payments on the Ethereum mainnet. The system, developed in collaboration with the Open Anonymity Project, aims to solve a common problem in the industry: linking individual requests to a durable billing account. This can lead to user data being exposed and tracked by service providers.
ZkAPI works by separating the act of paying from the content of what's being paid for. Users deposit ETH or USDC into a vault contract, turning their balance into a private 'note' that functions like digital cash. This note can then be used to make payments without revealing the user's identity or the content of the request.
The system relies on zero-knowledge proofs, which confirm that a payment is valid without disclosing any underlying details. This allows users to make payments without exposing their identity or request content. The zkAPI server is aware that a valid payment was made and knows the session's dollar total, but remains unaware of the payer's identity or the content of the request.