Elusiv | web3's Universal Encryption Layer | Sui Builder House Hong Kong
Um hey everyone I’m Julian the co-founder of elusive and at elusive we are building a universal encryption layer for web free that basically means we encrypt transaction data to ensure your privacy and to avoid leaking sensitive financial data to the General Public so why should you care about privacy in the first place
Privacy is a fundamental human right recognized in the U.N Declaration of Human Rights the international Covenant on civil and political rights and many other International and Regional treaties the right to privacy in the digital world and access to privacy preserving Technologies has become one of the most important human rights is human rights
Issues of the Modern Age governments around the world constantly try to restrict or privacy by introducing new builds often under the cover of protection for children or anything else that can come up with for example anti-terrorism or whatever and that even though digital technology is very vulnerable to covered
Manipulation and civilians and I think that we can all agree that we don’t want our Behavior persistently monitored and exploited for commercial political or malicious purposes and therefore privacy by Design is essential it’s important to recognize the limitations of a fully transparent blockchain institutional adoption believed to be
The primary Catalyst for crypto adoption and crypto growth is virtually impossible without privacy most businesses are unwilling and unable to conduct the financial operations on chain resulting in a staggering 40 trillion US dollar in untapped potential just for B2B cross-border payments ensuring that D5 remains free of manipulation is challenging as well as
Practices such as copy trades or stop loss hunting are widespread additionally individuals are unable to selectively disclose their nfts and constant consequently we all continue to reveal our sensitive financial information to the world leaving us susceptible to digital threats like scams and phishing as well as threats in the physical world
The need for privacy is unmistakable and by implementing privacy features we can introduce new use cases expand existing ones and as a result increase the value of the on-chain ecosystem by several orders of magnitude therefore you as a developer when building your apps should start thinking about how you can protect your users
Privacy as well eventually or SDK will offer an easy solution for this but the question now is how do we achieve privacy in web free without sacrificing security safety and decentralization because we currently have a privacy dilemma in web free as we just learned blockchains by default are transparent putting web free
At risk for even worse data exploitation than web 2. just to highlight this again even a single launch and transfer to a friend can potentially expose your entire transaction history balance as well as any future transactions to their view it indefinitely meaning you’re permanently talks and that’s really bad
Therefore we need to be careful that we don’t build something worse with web free then we already have with web 2 and prevent heading towards an aurelian future the second problem we have is the current privacy solutions could be exploited for illicit purposes in case you don’t know a Lazarus group a North
Korean hacker group used to Nato cache to hide their traces with hundreds of millions of dollars stolen from protocol X at some point the U.S government stepped in and now the open source code of tornado cash is sanctioned by the US Treasury meaning currently individuals in the United States are prohibited from
Legally using tornado even though most of the volume was and still is from honest users that just care about their privacy however as an immutable smart contract on ethereum the application itself continues to function and lastly to attempts to ensure safety and integrity within private systems has been reliant on centralized so data
Exposing processes like kyc web3 is Paradigm changing creating a digital world that truly empowers people but mainstream adoption won’t happen without privacy and therefore we build a solution and that’s obviously elusive and with elusive you can send receive and eventually swap funds privately on chain at almost zero cost
You can integrate privacy as a feature with or SDK for any kind of application like wallets D5 apps and nft minting site or any payment application um yeah so please reach out to me if you’re interested to integrate privacy as a feature into your application because we make privacy programmable
And lastly with elusive you achieve uncompromised privacy through or decentralized compliance system there are several parts to it but the most notable and unique is something we call autonomous protocol analysis a short APA it basically allows to decrypt transactions of illicit actors in a decentralized way and therefore removing
Them from the system by doing a multi-party computation short MPC decentralization comes through a network of three layers we call them the lucifordins that can eventually be run by anyone and these wardens on the one hand side relay transactions for you to gain privacy in the first place and on the
Other hand side also do on and off chain compliance checks a transaction can only be decrypted if the wardens reach consensus to a certain threshold that a specific transaction is indeed illicit and I’d say now it’s time for a short demo um I want to showcase or web app here
And make a prior transaction to give you a better understanding of how elusive looks like and how the protocol works on a high level um it just went live on Solana a few weeks ago so this is on Solana mainnet but eventually will look the same for
Sui we use the software wallet in this example they’re also building a wallet for sui called Ellie so check that out if you haven’t already and yeah just imagine we’re we’re on story using Ali right now so what we do first is to connect our wallet with the elusive application and
Sign this message to generate The elusive seed to basically see and spend or private assets first thing we need to do is to top up or private balance we currently have 10 USD in our wallet so let’s top up 8 usdc to our private balance after calculating the fees we
Can click top up and approve the transaction we can now see that we have 8 usdc inside or Pride balance so let’s send five usdc click confirm send then now it’s building the zero knowledge proof and the transaction went through successfully great let’s check out the transaction and or transactions tab
Um it deplies or private send and Top-Up transaction and here we can also see a small part of our compliance system we can generate a so-called vnkey copy and paste it into a compliance Explorer and now we can see our actual transaction and that we send funds to ourselves in
This example a use case for viewing Keys is for example in some countries when you’re doing your taxes you can share transaction with your tax consultant or any other case where you need to like share like a prior transaction you can do it with a viewing key
And you might have also noticed that the fees for this transaction were actually paid in the relevant token so in this case in usdc so how does elusive actually work well it’s it’s all ZK magic um let’s dive quickly into what happened under the hood in order for a user to
Send funds the link between the sender and recipient needs to be broken hence we split the transaction into two steps the first step consisting of generating a private balance the generation of the product balance happens in The elusive smart contract in short the user stores funds in a pool controlled by the smart
Contract where it keeps track of each user’s spending Authority for a user to spend their private balance they need to prove spending Authority spending Authority is generated using a hash based commitment team this cryptographic theme allows a user to commit to a value and hide it with
Ability to reveal later when one wants to spend the funds the commitment includes the amount the asset type and notifiers the nullifiers is the second part of this cryptographic stream a secret value only known to the user when they eventually want to spend the funds they prove ownership of the
Notifier to open the reciprocal commitment by generating a zkp although complex under the hood this is similar to how a utxo based system works all right uh that’s pretty much it from my side uh for future updates please join our community follow us on Twitter and join our Discord
Um one important point to take away from this keynote is that privacy is normal and that if you want to on-chain privacy for your transactions you should use Elusive and yeah don’t forget to to grab some swag and thank you very much thank you
Elusiv is building web3’s universal encryption layer for a secure decentralized world.
Elusiv Website: https://elusiv.io/
Elusiv Twitter: https://twitter.com/elusivprivacy
From April 14th to April 16th Sui community members attended informative presentations, networked, and generally had a great time in Hong Kong.
For more information about future Sui Builder Houses, visit: https://blog.suifoundation.org/announcing-the-2023-sui-builder-house-world-tour/
Helpful Resources:
💧 Sui Website: https://sui.io/
💧 Twitter: https://twitter.com/SuiNetwork
💧 Discord: https://discord.com/invite/sui
💧 Medium: https://medium.com/mysten-labs
💧 GitHub: https://github.com/MystenLabs
💧 For Developers: https://docs.sui.io/build
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