DeFi
Here’s why Vitalik Buterin endorsed the Railgun privacy protocol
In a recent interview with BeInCrypto, Railgun researcher Alan Scott explained the recent endorsement from Ethereum co-founder Vitalik Buterin.
This approval highlights the advancements and unique privacy features that Railgun aims to bring to decentralized finance (Challenge) sector.
DeFi through zero-knowledge proof technology
Railgun leverages zero-knowledge proofs (zk-SNARKs) to ensure user privacy when interacting with Challenge applications.
“Zero-knowledge proofs allow users to prove the truth of a statement without revealing the actual information. In the case of Railgun, users can prove they own a specific balance of crypto tokens in the Railgun smart contract, enabling privacy-preserving transactions,” Scott told BeInCrypto.
The project stands out in the DeFi space for its ability to conduct multi-contract calls privately. This innovation allows users to engage in various DeFi activities, such as trading and farming, from a privacy-preserving External Account (EOA). “This feature is a huge benefit,” Scott noted, and “it’s encouraging to see recognition from one of the greatest minds in the industry.”
Support from Vitalik Buterin reinvigorated the Railgun team, sparking new initiatives and driving execution. Although new collaborations have not yet materialized, the approval strengthens the credibility of the project and motivates contributors to improve DeFi privacy solutions.
Learn more: What is Railgun? A Guide to the EVM Privacy Protocol
Railgun features include private proofs of innocence, which help users demonstrate non-interaction with on-chain malicious actors. This technology ensures that users do not share a system with nefarious addresses. Additionally, Railgun integrates auditing features, such as a read-only private key, allowing users to reveal transaction graphs to third parties and integrate them with tax software like Koinly.
Scott highlighted the importance of technology and education in addressing privacy challenges. This approach has pushed Railgun to develop extensive documentation and an active community presence on platforms like Telegram and Discord.
“The best approach to addressing these types of challenges relies on technology and education. It’s about demonstrating from a technical perspective not only how these tools work, but also their practical effects,” Scott said.
Privacy on blockchain should be easy
Looking ahead, Railgun is set to introduce two major updates. The first is version 3, which is a complete overhaul of contracts towards a modular architecture. It enables new private DeFi capabilities such as leverage and reducing gas costs by up to 50% for certain transactions.
The second is Railgun Connect, a universal privacy plugin for Ethereum Virtual Machine (EVM). It allows users to use their private balance on most DeFi platforms without requiring integration.
With these, the protocol aims to make private transactions just as easily as public. Therefore, this ensures that DeFi users do not have to sacrifice privacy for self-custody and on-chain opportunities.
“The goal is to make private transactions as easy to use as public transactions, so that all DeFi users can stay private by removing as much complexity as possible. DeFi users should not be forced to choose between adopting self-custody and on-chain opportunities or giving up their valuable financial data,” Scott explained.
Collaboration across the privacy ecosystem is also a priority. Scott highlighted the efforts of Ameen Solamani and initiatives like Web3Privacy.info, which compile research on privacy mechanisms. These collaborations aim to advance the understanding and implementation of privacy technologies in the DeFi space.
Learn more: What are zero-knowledge proofs? Ensuring Web3 Application Growth
This commitment to innovation and privacy reflects why Vitalik Buterin’s endorsement is well-deserved, highlighting Railgun’s potential to transform the DeFi sector.
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