There are two types of privacy in financial transactions: anonymity and confidentiality. When a non-profit organization receives an anonymous donation, they have no idea about the information of the donor (anonymity), but they do know the amount of the donation received. And when you withdraw money at bank, the amount you withdraw is confidential — the person behind you doesn’t know the exact amount you’ve taken, but they know it’s you who’s withdrawing.
An important reason for the difficulty of large-scale commercial use of blockchain finance is that, as a public ledger, although it establishes trust among various participants, it also brings a new problem, how to protect user privacy data? Since all data on the chain is open and transparent, once it is maliciously mined and used, it will bring a serious threat to user privacy.
The existing blockchain privacy protection solutions can be divided into three categories: solutions based on crypto mixing transactions, Layer1 native chain architecture, and cryptography.
For the privacy protection solutions of crypto mixing transactions, privacy crypto such as Dash, block the connection between the sender and the receiver by mixing the transaction information of the participants；it can only achieves asset untraceability and does not hide key information such as the sender, receiver and amount of the transaction.
The solutions of Layer1 native chain architecture include Nym, Secret Network, Iron Fish, Manta Network, etc. Starting from blockchain architecture, the solution modifies the architecture so that the nodes in the blockchain maintain different ledger information. Although it can effectively avoid the leakage of user privacy, it is not compatible with Ethereum, the largest existing blockchain ecosystem, and it is difficult to expand application scenarios and build an ecosystem.
For the solutions of cryptography, it uses cryptography technology to protect the privacy of participants’ transaction, among which zero-knowledge proof has the highest degree of protection for transaction information. The more prominent solutions are Zcash, Aztec. However, although Aztec and Zcash can achieve complete privacy and non-interaction, they are not suitable for various complex scenarios due to the UTXO model.
In view of the shortcomings of existing privacy protection, we propose a concise, efficient, non-interactive and auditable privacy protection solution based on account model. It has the following characteristics:
Privacy protection: It can realize the privacy of the address in the transfer transaction, and also the privacy of the amount.
Programmability: The protocol encapsulates API interfaces such as private transfer, private transaction, and cross-chain, which easily brings developers a privacy engine in the computing and storage layers, and supports the realization of various complex applications through smart contracts.
Scalability: In order to apply to a large number of financial transaction scenarios, the privacy protocol should meet the high TPS, low cost, and high stability network system.
Multi-chain interoperability: The multi-chain interoperability protocol is compatible with mainstream public chains such as ETH, Matic, AVAX, and BSC. It can realize bridging assets, cross-chain messaging, and also cross-chain state sharing, lending, swap, governance and more scenarios.
What is Tusima?
Tusima is a controllable privacy network based on account model. It integrates zero-knowledge proof, recursive proof, homomorphic encryption and other technologies to achieve controllable on-chain data privacy function, protect the privacy of Web3 users’ sensitive data and build a scalable financial network with high TPS. It aims to build controllable privacy finance infrastructure in Web3.0 era.
Specifically, Tusima achieves anonymity of user identity and confidentiality of transaction data. Private asset exchange can be realized between any blockchain network, and controllable access to user private data is supported. Its core idea is to use Layer 2 for state management and Layer 1 security level for asset transfer and exchange in a completely decentralized way.
Based on the features of ZK-Rollup. All funds are held by smart contracts on the main chain, while off-chain calculations and storage are performed, and the validity of the calculations is ensured by zero-knowledge proofs. ZK-Rollup and homomorphic encryption provide transaction privacy while improving performance and significantly reducing costs. Tusima integrates the transaction state into Layer2 and updates the same final state on each Layer1. Status updates are maintained by ZK-Rollup to achieve the same level of decentralization and security as Layer1. In addition, Tusima is based on an account model, providing flexible extensibility and programmability for the community and developers.
What core problems are solved:
1. Privacy of on-chain identity and transaction data
2. Privacy function with controllable access
3. Efficient and low-cost rollup transactions with the security of the main chain of Ethereum
4. The auditability scheme based on ZK ensures the legitimacy of the source of Tusima’s second-layer network assets
What are the technical advantages:
1. The privacy solution based on the account model is different from the technical implementation based on UTXO in the market. It has higher scalability and supports smart contract programming. Tusima uses the asymmetric homomorphic encryption algorithm Elgamal to do the encryption between ciphertexts. Due to the asymmetry of the algorithm, users can decrypt their own transaction data, but cannot view other people’s data or be viewed by unauthorized users.
2. More efficient privacy address shuffling technology (Shuffle)
3. Full network, full link privacy (user local encryption, second-layer network nodes do not know transaction information, and first-layer network does not know transaction information)
4. Use Halo2 recursive proof for parallel computing to achieve faster zk proof speed
5. Use Plonk algorithm to make Proof smaller to achieve lower transaction costs
6. ZK-based auditability scheme to ensure the source of Tusima’s second-layer network assets legality
What are the application scenarios?
- 1.Commercial level
a. Application scenarios of high-frequency and high-interaction business activities
As the most widely used and most credible on-chain infrastructure, Ethereum cannot be used in high-frequency and high-interaction business scenarios due to its high use cost and low transaction efficiency, and can only be used as the final data settlement layer, while Tusima is based on ZK-Rollup technology, has the fastest transaction solution in the current blockchain, the transaction cost is not 1/100 of Ethereum, and has the main chain level security on Ethereum.
b. Commercial and financial privacy scenarios
Blockchain is an open ledger technology. The open, transparent and verifiable transaction data ensures the correctness and sustainability of the ledger. However, the openness and transparency of data is not favorable by everyone. Transaction data, especially commercial financial data naturally requires privacy protection. Regardless of funds, securities, banks or other financial institutions, the use of blockchain to solve data settlement problems must be inseparable from data privacy issues. The use of blockchain to solve the problem of data settlement must be inseparable from the problem of data privacy. After Tusima supports business scenarios with high efficiency and low cost, the core problem of privacy protection of transaction data on the chain is solved. In the Tusima financial network, only users know their transaction information, not even the nodes that verify the transaction, and no one else can know the specific information of the transaction unless authorized by the user. For financial institutions, Tusima allows users to encrypt and decrypt transaction information.
2. User level
Tusima not only provides anonymity to the transaction address and confidentiality to the transaction amount, but also solves one of the most vexing problems currently: the MEV problem (or Front-Running problem). Tusima provides full protection against MEV, unlike other Layer2 which relies on low latency to partially prevent MEV.
Firstly, Tusima is implemented based on Layer2, its low retardance is naturally resistant to MEVs. Secondly, the amount of each transaction is encrypted according to the public key, and only the user knows the details of the transaction. Finally, Tusima has a fair sort service. Tusima’s mempool is a first-in, first-out (FIFO) queue, which is related to the generation of privacy certificates. Each transaction must be guaranteed to be executed in order. All transactions in all Tusima are fully protected against MEV operations.
How to participate in Tusima Testnet?
Tusima Network, a controlled privacy protocol based on ZK-Rollup, has officially launched the public TestNet campaign and distribution of test contribution certificate SBT on September 30.
The public TestNet will run until Oct 31, 2022. Users can participate in testing during the TestNet phase. The functions mainly include recharge of Layer 1, private transfer of Layer 2, withdrawal and viewing of private transaction records. We recommend that users read the Tusima test manual for more information and instructions about the Tusima TestNet.
During the public TestNet, you can submit feedback in the Discord channel, giving your experiences and suggestions about the product. And follow us on Twitter and Medium so you won’t miss the upcoming events.
Welcome to Tusima Community:
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Findora is leading the privacy revolution in Web3 by creating a privacy oracle for any Layer 1 or Layer 2 chain on Ethereum.
Similar to how Polygon solves all things scaling for Ethereum, Findora solves privacy scaling for Ethereum by using an innovative blockchain architecture that no other project has tried. By providing privacy, Findora will allow individuals and institutions to enjoy the security and decentralization of Web3 with the protections of Web2.
- Findora is a leader in privacy blockchain technology using zero-knowledge proofs.
- Although many assume crypto is automatically private, public ledgers and public blockchains expose their financial transactions.
- Findora uses advanced cryptographic technology collected in their open-source Zei Library, which includes Bulletproofs and Turbo Plonks.
- It does more than all other zero-knowledge projects, providing not only confidential transactions but also powerful ZK toolkits, a UTXO settlement layer, and unparalleled composability.
Crypto =/= Private. People Just Assume It Does
People associate crypto with privacy and being secretive. After all, “crypto” is Greek for “hidden,” so it is suited for anonymous transactions natively already, right?
Well, no. Public blockchains like Bitcoin and Ethereum use open ledgers that publicly broadcast transactions between “wallets.” These wallets are tied to each of your transactions on the public ledger. Thus, if anyone ties your personal ID to your wallet address, they have your entire transaction history.
For example, imagine you lived in a house made totally of glass. Neighbors could see you cooking, working, using the restroom, and engaged in personal activities as they walked by. Your only protection was a mask you had to wear everywhere.
That mask is like your wallet address on a public blockchain like Ethereum. Everyone can look up all the transactions tied to that address. And if the mask slips, if that address is tied to your personal identity, you would essentially have zero privacy on-chain.
Crypto is pseudonymous at best. It poses too great a privacy risk for many businesses and communities to use. But what if there was a way to have the same benefits of a public blockchain – trustlessness and decentralization – without sacrificing privacy?
Never Fear; Privacy is Here!
Findora revolutionizes blockchain technology, integrating a UTXO ledger (as Bitcoin uses) with an EVM ledger (as Ethereum uses). By parallelizing these ledgers, Findora unites the two so developers can leverage either one, giving Findora more utility than chains that adhere to only a single blockchain model.
Findora has created an inherently different blockchain architecture that is optimized for zero-knowledge integration and cross-chain compatibility. It’s not a Layer 2 ZK project like ZK-Stark nor a token mixer like Tornado Cash. These projects are important and do good work — they are part of what we call the Privacy Alliance — but they don’t offer the native settlement capability and universal programmability that Findora can.
Even though transaction data, like a token amount, token type, and wallet addresses, can be shielded on the Findora blockchain, the data can still be audited by regulatory bodies for compliance purposes. This allows Findora to neatly fit the existing needs of the financial sector so institutions and businesses can move their capital to Web3.
Because of its EVM ledger and Tendermint consensus engine, Findora is compatible with most of the cryptoverse and is a cross-chain-friendly project. This allows other projects to use Findora like a privacy oracle as their own privacy layer.
What is A Zero-Knowledge Proof?
Zero-knowledge proofs are mathematical algorithms that allow one party (the prover) to prove to another party (the verifier) that they know a value x, without conveying any information about the details of the proof. For example, it would be a way for one person to prove they know a secret password without revealing what that password is. The classic example is the cave of Ali Baba, but we have one that is a bit more relatable.
Imagine you’re back in middle school, and your friend Susie claims to have the number of the girl you like. But you don’t really believe she has it. You want your crush’s number so you can ask her to the movie, but Susie won’t give it out. How can she prove she has it without giving it to you? This is where a zero-knowledge proof would come in handy so that Susie could prove she has the number without revealing what it is.
Susie reveals 2 digits of the 10-digit phone number (these act as the keys in a real ZKP). You don’t believe that’s really her number, of course, so Susie calls it, and your crush answers! You know it’s her because is the same voice, laugh, and personality.
Susie hasn’t given you your crush’s number, but she did prove to you that she had the number by verifying the voice and a few digits to you.
In this analogy, Susie revealing two digits and calling your crush is an example of a zero-knowledge proof. ZKPs are the exchange of two keys, one private and one shared, that, when hashed, solve a specific problem. When solved, it proves to any observer that both parties have the answer without revealing what the answer is.
Findora’s Cryptographic Techniques
All of Findora’s ZK cryptography is stored on the Zei Library, the most advanced collection of ZK implementations in Web3. You can find it and other open-source documentation on the Findora GitHub. Here are a few key ZK proofs and concepts to know:
ZK SNARK: The most commonly used ZKP, a ZK-SNARK (“succinct non-interactive argument of knowledge”) is a proof that requires two keys, one public and one private. The private key is used to generate the proof, while the public key is used to verify the proof. Bulletproofs and Turbo Plonks are specific types of SNARKs.
Bulletproofs: Bulletproofs are “zero-knowledge proofs that require no interactivity and have very short proof and verification sizes.” They were created in part by Findora researchers at Stanford in 2018. Findora uses them to make Blind Asset Records (BARs) which, practically speaking, can shield the amount and token type involved in a transaction.
Turbo Plonks: A system of polynomial commitments with sublinear-sized SNARKs, Turbo Plonks were created by Ethereum researcher Tim Ruffing in 2018. Findora uses Turbo Plonks for “Triple Masking,” which allows wallet addresses involved in a transaction to remain anonymous. They convert a BAR into an ABAR or an “anonymous blind asset record.”
ZK STARK:(not used by Findora yet but important to know): ZK STARKs (“scalable transparent arguments of knowledge”) are “zero-knowledge proofs that do not require a trusted setup, are post-quantum secure and have very short proof sizes.” They were created by Eli Ben-Sasson, Madars Virza, and Alessandro Chiesa in 2017.
Zero-knowledge proofs are a relatively new area of cryptography, and the team at Findora is always looking for ways to improve upon them. If you’re a cryptography researcher or developer and are interested in working on ZKPs, or a developer or a Rust Engineer, please reach out. We are hiring and looking for interactions on our Discord.
What Makes Findora Different From Other ZK Projects
As mentioned before, Findora is not a Layer 2 project, it is its own separate blockchain. However, it was built to be cross-chain compatible, focusing on Ethereum-compatible chains first but will also be interoperable with Tron, Solana, and others in the future. Unlike other zero-knowledge projects, Findora is focused on more than just confidential transactions but also wants to act as a universal privacy oracle that can settle transactions.
Unlike projects like Zk-Sync and Starknet, Findora is not a Layer 2 or a scaling solution. Unlike projects like ZK Panther, it can provide other projects with native privacy and allow them to issue privacy-preserving tokens using our UTXO layer as a secret bridge across all Layer 1 networks. Unlike privacy coins or token mixers, Findora is extremely composable and capable of transacting complex smart contracts in a confidential manner.
Findora is working to make DeFi private enough for mass adoption – safe for personal and institutional use.
Findora can claim major contributions to the field of zero-knowledge cryptography since it started in 2017. Here’s a brief timeline of the project’s history:
2017 – Findora researchers at Stanford University contributed to the development of Bulletproofs
2017-2020 – Findora researchers and engineers aggregated their findings into Zei Library, an open-source repository of the most advanced zero-knowledge cryptography in the industry.
2020-2022 – Findora helps develop Turbo-Plonks, a lightweight zero-knowledge proof used for scaling, and takes it from an academic exercise to having practical applications.
2021, March – Findora beta mainnet launches
2021, July – Testnet staking goes live
2021, September – Findora adds EVM extension and Ethereum compatibility through its own “smart chain.”
2021, October – beta mainnet staking launches
2021, October – Findora’s $100 million Ecosystem Fund goes live to incubate projects and offer grants
2022 – Triple Masking, which provides for fully anonymous transfers to go live.
A Private Future Made Public
DeFi and Ethereum have worked so hard to create a decentralized future that they forgot that privacy is a financial primitive. It’s not some cloak for criminals. It’s a necessary part of society, enabling business, free speech, free association, innovation, true sovereignty, and growth. Many institutions are forced to park their funds on the sidelines of DeFi because transacting on public blockchains would reveal proprietary trading strategies.
Findora can be used for a slew of necessary use cases: private DAO payrolls and voting, private insurance payment, private NFTs, and much much more.
Findora scales Ethereum privacy with next-generation zero-knowledge proof technology. It is a leading privacy-preserving smart contract platform for Web3, giving developers the tools they need to build a new financial internet. It is poised to use privacy to make DeFi a safe place for individuals and financial institutions and accelerate the mass adoption of crypto around the world.
Whatever the future for Web3, it’s clear that privacy, and Findora, will be a big part of it.
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