Elusiv, a privacy protocol building Web3’s universal encryption layer for a secure decentralized world, has launched the first Private Token Swaps on Solana.
Now available via the Elusiv Web App, the Private Token Swap functionality “allows users to exchange assets without disclosing private information about themselves or the transaction.”
Elusiv is laying the groundwork “for private DeFi in the Solana ecosystem, where Decentralized Exchanges (DEXs) can benefit from zero-knowledge technology, improving security guarantees for users.”
A lack of privacy characterizes the Web2 landscape as users’ data is “continually being collected and sold without their knowledge or agreement.”
Web3 is heralded as “a more secure iteration, but blockchains are intrinsically public and immutable, risking a paradigm worse than its predecessor, Web2.” Elusiv’s Private Token Swap functionality will “preserve user privacy for one of DeFi’s most fundamental features and allow users to swap assets without revealing their identities.”
Decentralized networks offer users permissionless trading of digital assets via DEXs, but privacy is “not guaranteed since data is collected and stored in transparent public databases such as block explorers.”
This public trail of users’ transactions makes them “targets for manipulation.”
Designed to deal with this issue, Private Token Swaps “circumvent a significant amount of counterparty risk by encrypting a user’s public key.” This enables users to swap assets with complete privacy, “as token pairs and amounts can never link to a user’s wallet address.” This increases users’ security, hides trading strategies, and “protects those making frequent swaps or exchanging large quantities.”
Julian Deschler, Co-Founder of Elusiv, said:
“Private token swaps secure one of the most fundamental actions in all of DeFi and push the entire Web3 space forward to deliver on core values of self-sovereignty and data ownership. Users and seasoned traders alike can hide their transaction history, trading strategies, and assets by decoupling token swaps and public keys, paving the way for open and fair DeFi.”
Upon logging into Elusiv, users can deposit funds “into a private balance. Once users top up their private balance with SOL or SPL tokens, they can either send tokens from their private balance to any Solana wallet or swap tokens without disclosing their public key.”
When an Elusiv user conducts a token swap via the Elusiv Web App, a temporary key is generated, “severing the connection between a user’s public key and encrypts the origin of the transactions.” This temporary key acts “as the ‘sender’ of the transaction and ensures complete privacy for users wanting to keep their identities separate from their trading activities.”
Nicolas Schapeler, Co-Founder of Elusiv said:
“We are excited to deliver a Solana-first with private token swaps. The chain’s high efficiency and low fees make it an ideal place to launch this critical feature. Solana’s composability with existing protocols will allow seamless synergy between different applications, making privacy more commonplace throughout the ecosystem.”
As noted in the update, Elusiv is “a blockchain-based, zero-knowledge privacy protocol enabling users and applications to access universal encryption.”
Elusiv utilises zk-SNARKS for private transactions and decentralized compliance solutions, creating “a symbiosis between privacy and compliance.”
This overcomes “a central Web3 pain point: ensuring privacy remains a human right without sacrificing security, safety, and decentralization.”