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Great piece by @lunar_mining for @defiant: "Here's What the Future of Anonymous DeFi Will Look Like"
It argues that a privacy-enhanced DeFi is now inevitable, because “lack of privacy is one of DeFi’s biggest setbacks.” I want to share some additional thoughts on this
It argues that a privacy-enhanced DeFi is now inevitable, because “lack of privacy is one of DeFi’s biggest setbacks.” I want to share some additional thoughts on this
1/7 Transparency sounds like a nice word, but it’s a coin with two sides
Not everybody wants transparency in every context.
Not everybody wants transparency in every context.
2/7 For a trader, it can make you invulnerable to front-running attacks, when others undermine your trade, because they can see it broadcasted on the blockchain before it has been validated.
3/7 On the other hand, a lack of transparency could enable illegal activity that brings our ecosystem into disrepute.
How do we tackle this?
There are many new solutions on the way, including so-called “zero-knowledge” (“ZK” proofs,” which are described in the article.
How do we tackle this?
There are many new solutions on the way, including so-called “zero-knowledge” (“ZK” proofs,” which are described in the article.
4/7 These are designed to prove that money is legit, while still adding a kind of privacy layer.
However, we think there is already a strong solution in the market, represented by @TornadoCash - a community DeFi protocol which has withstood the test of time and intense usage.
However, we think there is already a strong solution in the market, represented by @TornadoCash - a community DeFi protocol which has withstood the test of time and intense usage.
5/7 Link: https://bit.ly/3dmLgIG
Moreover, an exciting layer of privacy apps is already being built on Tornado - some of which we are not quite ready to reveal just yet, but which are backed by Tornado’s strength and experience in this field.
Moreover, an exciting layer of privacy apps is already being built on Tornado - some of which we are not quite ready to reveal just yet, but which are backed by Tornado’s strength and experience in this field.
6/7 One more project is @StarkWareLtd, trying to improve scalability and privacy in blockchains using STARK technology, providing cryptographic proofs that are zero-knowledge, succinct, transparent (no need for a trusted setup), and post-quantum secure.
7/7 Whatever solutions #DeFi ends up with, and we’re sure there will be many, they will have much broader ramifications beyond DeFi 
As @lunar_mining puts it: "Private applications could come to fundamentally shape how we use the web."
Full article https://bit.ly/3tMtvZr
As @lunar_mining puts it: "Private applications could come to fundamentally shape how we use the web."
Full article
https://bit.ly/3tMtvZr
Bonus - great thread on @TornadoCash from @bluekirbyfi
including investment thesis from Kirbi :) https://twitter.com/bluekirbyfi/status/1359897598853668870
including investment thesis from Kirbi :) https://twitter.com/bluekirbyfi/status/1359897598853668870
