Thread by @AlexShippXFT

I had a blast meeting up with the brightest minds in the #Ethereum community this past week at @EthCC, where I delivered a keynote presentation titled:

“#DeFi 2.0: The Dawn of #Private DeFi”

If you didn’t make it to Paris, don’t sweat it - here’s what you missed 🧵👇 1/

A lot of us in the #crypto-space believe that we are solving a longstanding monetary crisis, and that fiat currency is a perversion of sound money. It’s not. Fiat currency is the final, toxic stage of a centralized system credit issuance. 🏦 2/

And as per usual in centralized systems, although the rules prevent bad acting on the outside, they enable and incentivize bad acting on the inside. Not a lot of central banking fans in these parts. 🤷‍♂️ 3/

On this accord, #Bitcoin, #Ethereum, and #DeFi are pretty damn exciting because they permit us for the first time to build sound, rehypothecation-proof systems of money AND credit via decentralized blockchain architecture - and ultimately, from math.🦇🔊💰 4/

Here’s the catch: our new economic paradigm is anchored in the virtual domain, where everything can be replicated ad infinitum at virtually zero cost - including our data. 💾 5/

As per @TheEconomist’s May 2017 article, data is now the world’s most valuable commodity - ahead of oil. 😮 6/

economist.com/leaders/2017/0…

So while we can leverage #blockchain architecture to produce systems of sound money and credit, the virtual domain demands one additional measure: the protection of our data. 🔒 7/

In the virtual domain, Privacy IS Scarcity, and until user #privacy is ensured, the rehypothecation of our data - and the theft of the wealth vested in it - will continue unabated. 😟 8/

➡️ That’s why we at @OffshiftXFT have taken it upon ourselves to set in stone the #PriFi Standard for Private #DeFi applications operating at the cutting edge. 9/

A bona fide PriFi application encompasses all of the following components:

🖥️ Applications of (completely) Decentralized Finance
🔒 Uncompromising Privacy
🔗 Fully on-Chain Architecture (Ethereum Layer 1)

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Why On-Chain? Privacy has been relegated to the back burner of cryptographic innovation, and privacy-centric services require huge tradeoffs to access - namely the avoidance of DeFi entirely. 😨 11/

To bring privacy back on-stage, we need to bring it back on-chain, where it is easily accessible, censorship resistant, and user-friendly - on L1 Ethereum.

No if’s, and’s, or bridges. 🌉 ❌ 12/

As of today, no existing platforms measure up to the PriFi Standard because building privacy-centric applications on Ethereum’s public blockchain makes for an exceptional technical challenge. 🏗️ 13/

📒 Contrary to Bitcoin’s UTXOs, Ethereum’s Account-based transaction model holds account balances at the protocol level - so shielding or obscuring transaction data is not enough to foot the bill for a fully private system.

But don’t fret - on-chain privacy is no pipe dream! 14/

🛡️ At @OffshiftXFT, we are tackling the technical challenges and getting the world’s first bona fide PriFi platform ready for launch.

Here’s how we do #PriFi: 15/

1) Offshift employs Bulletproof zk proofs to generate private, on-chain synthetics called zkAssets. 🔐
2) zkAssets are exchanged between L1 Ethereum Accounts in the form of cryptographic commitments. 🔄

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3) Cryptographic commitments are exchanged in a UTXO transaction model, realizing a fully private system of exchange while remaining exclusively on Ethereum Layer 1. ⛓️

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Want to learn more?? Catch the entire talk on #zeroknowledge, #privacy, and of course, #PriFi and @OffshiftXFT with full Q&A at the link below ⬇️



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