CZ Highlights zBNB as BNB Chain Introduces Private Transactions for Users

• Changpeng Zhao has welcomed zBNB to the BNB Chain to offer private BNB transactions.
• zERC20 launched zBNB to offer native privacy, with users burning their BNB to acquire the new token, which will have no link to the original address.

zERC20, a new project that aims to offer privacy for ERC20 tokens, has announced the launch of zBNB, its first token deployed on the BNB Chain.

zERC20 allows users to send tokens that preserve privacy but sent using the same operations as the regular ERC20 tokens, with no special apps or wallets. In practice, a user is required to burn the original token, which can be proven using the ZK proof-of-burn under Ethereum’s EIP-7503.

The user then receives an equivalent amount of zERC20 tokens, which have no visible link to the original address. The recipient is required to generate a burn address from which they mint fresh zERC20 tokens using the cryptographic proof-of-burn they receive from the sender.

zERC20 is an ERC20 token standard, meaning it works for Ethereum and all networks that are compatible with the Ethereum Virtual Machine (EVM). This includes Base, Arbitrum, Optimism, Polygon and more.

The network has settled on the BNB Chain as the first network to debut the privacy-enhancing token, launching zBNB, a wrapped token that enables users to transact BNB with their identities and transaction paths remaining hidden.

zBNB Unveils Private Transfers on BNB Chain

zBNB is a wrapped version of BNB, which users receive after burning their BNB and collecting the proof-of-burn. zERC20 notes that as the BNB Chain advances towards 20,000 transactions per second this year, “privacy for protecting user balances and transaction histories is no longer optional—it is becoming essential infrastructure.”

It claims to have chosen BNB Chain as it has one of the largest userbase in crypto; as we reported, CZ claimed that the network was hitting 2.4 million daily users in December. 

BNB Chain users will enjoy the native privacy of zBNB without requiring any additional software or wallets. The new token prevents other users from seeing the transaction history and account balance of the sender or recipient.

Binance founder Changpeng Zhao described the new token as a “pretty cool” project and welcomed it to the BNB Chain ecosystem.

Nina Rong, who heads growth at BNB Chain, added:

The launch comes just a week after CZ went on a podcast with Chamath Palihapitiya where he described lack of privacy as the missing link for crypto payments adoption.

It also comes a month after BNB Chain partnered with Brevis to unlock a new programmable privacy layer that user zero-knowledge proofs. It’s expected to go live before the end of next month, as CNF reported.

Nuno, the lead contributor at zERC20, commented: