Findora: The beauty of the balance between financial privacy and supervision

12 Jan 2023

In the era of data proliferation, do we still have privacy?

Now we have to ask the blockchain, in the era of blockchain, everything is more transparent, do we still have privacy at all?

There has always been a major misunderstanding about Bitcoin and blockchain, that is, Bitcoin is private and anonymous. Why is there such a misunderstanding? First of all, we need to know the difference between "non-real name" and "anonymous". The so-called "non-real name" means that there is no need to bind to the real identity. Your identity on the chain is the address account, and all the information of this account The data is public on the entire network, anyone can view it, and even use big data analysis tools to easily find the real person behind the address.

How to protect data privacy in the blockchain? How to meet the requirements of individuals, enterprises, and governments to protect data privacy is the biggest problem that must be faced directly to promote the large-scale popularization of blockchain.

Why is privacy so important?

Blockchain and the Internet are in the same line. We might as well start with the privacy issues in the development of the Internet, and see the importance of privacy more intuitively, so now you can see the future of blockchain privacy issues.
In the "Internet +" era, Uber, Airbnb, food delivery apps and other applications have brought great convenience to people's work and life, but the problem is that platform operators can access users anytime, anywhere. Collecting, capturing, and analyzing daily behavioral data without the user knowledge.

Most Negative Effects such as :

1 . Leaked mobile phone number, received all kinds of advertising calls all day long.

2. Recently browsed pages were tracked, and soon related business advertisements popped up continuously.

3. Family background and social relations are easily exposed by passers-by.

4. There are loopholes in some hotel booking websites, and sometimes the room information of the tenants is leaked.

Do you still think privacy is not important?

The infringement of Internet privacy has become a prominent social problem and has attracted attention from all walks of life. Think the other way around, does the blockchain also need privacy protection? The answer is also yes.

Even, the privacy problem of the blockchain will be more prominent than the Internet. There are two main reasons. One is that the blockchain is a distributed system, and all nodes can obtain all the information on the chain; the other is that the blockchain is credible. Because of this, when we use the blockchain, the information on the chain is completely public. Every transaction, every contract interaction, and even every activity on the chain is public. At the same time, due to the immutability of the blockchain , Personal chain tracking will always be recorded.

Especially under the current explosion of DeFi applications, because there is no privacy protection, user transaction behavior will be maliciously analyzed.

More financial chaos caused by the lack of privacy is frequently occurring in the DeFi ecosystem on Ethereum.

Challenges and opportunities coexist. More and more industry leaders and top organizations are beginning to pay attention to the privacy track, and privacy is becoming the next market explosion point.

Polychain, the most active fund in the encryption field, is also betting on the privacy track. Polychain has multiple privacy projects in its portfolio, such as NuCypher, StarkWare, Oasis Labs, Origo Network, Findora, Orchid. At the same time, Olaf, the founder of Polychain, believes that privacy is an important function in the financial system. In the larger global economic system, it is a good thing for individuals to have a certain degree of financial privacy.

It is worth noting that Polychain has heavily invested in Findora, because Findora has created a completely decentralized, non-threshold, privacy-protected inclusive finance, and a decentralized financial and infrastructure platform with a native privacy layer.

Findora: The beauty of the balance between financial privacy and supervision

As early as December 2012, the first blockchain protocol for privacy issues appeared. The CryptoNote protocol mainly used privacy address and ring signature technology. Then in 2013, the Coinjoin technology to enhance the privacy of BTC appeared again, based on the "mixed currency" technology. Ring signature and currency mixing are important explorations in the privacy protection of the blockchain industry in the early days, but the technology that allows the blockchain industry to enter the era of privacy protection in the true sense is "zero knowledge proof."

Findora privacy protection technology is applied to two new zero-knowledge proof systems: Bulletproofs and Supersonic. Simply put, Bulletproofs is an anonymity that can achieve ordinary complexity, and Supersonic is an anonymity that can achieve high complexity. What are the advantages of Findora zero-knowledge proof technology compared to other privacy projects? Let's take Zcash as an example, which is the main zero-knowledge proof technology.

Zcash is what we know as Zcoin. Zcash uses the zero-knowledge proof solution of zk-SNARKs. There is a prominent problem with zk-SNARKs, which is that the amount of calculation and time-consuming is huge, and it is difficult to meet the large-scale and multi-party computing needs. Compared with Big Zero's zk-SNARKs, Findora's Bulletproofs technology can reduce the size of encrypted transactions, which can be used for data confidentiality and auditability, thereby ensuring that the privacy of consumers and financial services is not infringed.

Findora other core technology, Supersonic, is to explore a "moderate" route between supervision and privacy.

Findora beauty

The use cases of anonymous coins are mostly concentrated in gray areas such as illegal transactions, but this does not mean We want to exclude privacy. The simple truth is that most cryptocurrency users, including you and me, are ordinary people, and we also need privacy protection. However, we have to be wary of the fact that the supervision of anonymous coins will be more and more severe. For example, in order to cater to the sanctions policies of the US financial regulators, Bittrex has removed privacy coins such as XMR, ZEC and DASH. Therefore, how to find a middle road between privacy and supervision has become a difficult problem in the blockchain industry. Let's take a look at Findora solution.

Findora Supersonic zero-knowledge proof technology meets the application scenarios of supervision and auditability. This is an optional privacy technology solution that can prove to the regulatory authority that a certain taxpayer’s identity related transactions have completed tax payment. At the same time, user privacy can be protected (the specific transaction information may not be disclosed to the institution).

In addition to the art of balancing privacy and supervision, Findora will also provide a "privacy infrastructure" for the entire DeFi, creating new DeFi application scenarios, such as confidential asset cross-chain bridges, through the Findora network, BTC, ETH, LTC,etc., can be exchanged through the Findora network; Decentralized exchanges, on the basis of protecting trading data and privacy, help traders achieve large, low volatility transactions, privacy stable currency, Findora takes into account both privacy and auditability. In the issuance and circulation of stablecoins, it is naturally beneficial to generate auditable privacy stablecoins based on algorithms.

In the future, Findora will use compliance and privacy features to become an important infrastructure and entrance for the traditional economy to enter the blockchain world.

Write & Read to Earn with BULB

Learn More

Enjoy this blog? Subscribe to CapitalThink


No comments yet.
Most relevant comments are displayed, so some may have been filtered out.