Elusiv Protocol: Solving the Privacy Puzzle in Crypto with zk Proofs

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Coinmonks

8 min readApr 16, 2023

Imagine you have a secret diary where you write down your deepest thoughts and feelings. You want to keep it private and not let anyone read it without your permission. So, you use a special invisible ink that only you can see, and you keep the diary locked in a secret drawer that no one knows about. That’s similar to how Elusiv’s privacy layer works for blockchain transactions. It uses special encryption techniques to make your transactions private and secure, just like your invisible ink and secret drawer keep your diary safe from prying eyes.

Solana + Elusiv = A Perfect Match

Solana and Elusiv are like the Batman and Robin of the crypto world!

Solana’s powerful blockchain technology provides the backbone for Elusiv’s privacy protocol, working hand in hand to keep your transactions incognito. Just like Batman’s gadgets and Robin’s acrobatics, Solana and Elusiv team up to ensure your transactions are fast, secure, and private. With Solana’s blazing fast speeds and Elusiv’s top-notch privacy features, you can send and receive digital assets with confidence, knowing your information is protected from the villains. It’s a superhero duo that’s here to save the day for crypto enthusiasts!

We can’t forget the Batmobile though, can we?

Zero Knowledge proof is like the Batmobile for Elusiv and Solana, working behind the scenes to ensure smooth and secure operations.

Zero knowledge proof technology can help keep blockchain transactions private by proving that a transaction is valid without revealing any sensitive information. This can help to protect user privacy and enhance the security of blockchain networks.

Why is privacy such a big concern?

Nobody likes a nosy neighbor snooping through the window while you’re counting your money or doing something personal to you.

In the same way nobody wants to show the world what they are spending their money on, knowing someone out there might know their wallet address and try to take advantage of it.

In the world of cryptocurrencies and decentralized blockchain technology, privacy has now become a hot topic. Users crave the ability to transact without revealing all their personal information to the world, but at the same time, compliance with regulations and security are also critical concerns. It’s like walking a tightrope, trying to find the perfect balance between privacy and compliance. This is where Elusiv comes in, offering a solution that doesn’t compromise on PRIVACY and COMPLIANCE.

In this article we will dive deep into the need for a privacy layer for blockchains and how Elusiv can take care of it.

About Elusiv

Elusiv is a protocol enabling a private way of sending and receiving digital money, like SOL or SPL tokens, using a technology called Zero-Knowledge. It’s like having a secret code that only you and the person you’re sending money to can understand. Elusiv also helps make sure that people follow the rules and laws when using cryptocurrency, which is important for everyone’s safety.

Parties Involved

While performing a transaction, there are 3 parties involved:

Sender: The wallet which is sending the money privately.
The Elusiv Pool: The shared pool of funds where the sender sends the money to maintain privacy.
Receiver: The wallet that is receiving the funds privately.

Now let’s learn how these three parties help conduct a private transaction.

How to make a private transaction using Elusiv

1.. Log into your Elusiv wallet.

2. After logging in, you can see two types of balances: public and private. Your public balance is for making regular transactions that are visible to others. Your private balance works like a debit card, where you need to add funds from your public balance to use it for private transactions.

3. To add funds in your private balance, click on the “top up” button, add required SOL or SPL tokens and then confirm the transaction.

4. Now the required funds would be transferred from Public balance to the private balance. After this, click on the “Send” button and this window will appear.

Put in the recipient’s details (this can be any public key on solana blockchain and it doesn’t need to be using Elusiv).

5. Now enter the amount you want to send, Click on the toggle ”Send Privately” and then click on “Send” and then confirm the transaction.

Afterwards, the funds go to a special shared pool managed by the Elusiv program. Then, the program is directed to send your funds to the person you’re sending them to. From the outside, we can only see that you deposited money into Elusiv and made a payment, but we won’t be able to connect them together..

You might be thinking, “Can’t anyone just estimate the track of a transaction from the sender to the receiver while checking the withdrawal time and transaction amount?” Well, you’re partially right!

The Elusiv Pool is like a big ocean where lots of people put their funds in and are transferring their assets, making it hard to connect the dots between the sender and the receiver.

But here’s the catch — if you send let’s say 10 SOL to the pool and then quickly withdraw the same amount to a receiver wallet, it can be easier to track. So instead, you should make transactions at different frequencies to greatly increase your chances of staying under the radar and not getting traced back. Be elusive!

How Elusiv’s Architecture Works

Let’s assume that the sender “A” is sending an amount “X” to the receiver “B”

When “A” tops up her balance for the token she wants to send, say SOL, a Commitment is generated. A commitment is a secret value only known to the sender.
After this A can easily send to B. For this, she has to generate the zero-knowledge proof which proves the knowledge over the secret values used to create the commitments above.
Once the zk proof has been generated it is transmitted by an Elusiv Warden to the elusiv program. The elusive warden not only transmits the zk proofs but also makes sure that “A” is a good actor by doing various on-chain and off-chain checks.
Elusiv has further Compliance features to keep the bad guys out. When bad actors steal funds on the blockchain, the community, in general, has consensus over those actors being unwanted.
They apply this to the protocol where the users have consensus over a restrictive list of actors the community doesn’t want privacy for. For example, Known hackers are called “the list of outcasts”. Each warden runs a processor with a trusted execution environment (TEE). These TEEs can be used to process encrypted data that remains encrypted to the outside world and can only be viewed in this secure environment without any actor being able to see it.
The Way the TEEs are designed in their case only allows them to check whether a private transaction has been sent by a normal user or an outcast. If an outcast transaction is privately identified in the TEEs, the privacy of this outcast is removed and all other users remain private.
If the zk proof has been successfully verified in the elusiv program, a new commitment will be placed with the updated balance and the SOL or SPL token are privately sent to “B”.

This system addresses one big problem: bad actors will most likely be only identified as bad actors when it is too late, meaning, they’re already private. This system allows to remove privacy even afterwards making the protocol safe to use for everyone else.

The outcast still has the control over his funds but is unable to gain privacy through elusiv since the community doesn’t want to provide privacy to him.

Advantages of Elusiv

Making Privacy Affordable : Forget breaking the bank for private transactions! With Elusiv, base costs for making private transactions are as low as 1 cent, making it 100x cheaper than other private protocols on Solana.
Compliance: Elusiv doesn’t mess around when it comes to compliance. It’s got a whole arsenal of measures in place, including a flagging system, proof of identity, and proof of origin, to make sure no sneaky bad actors can use it. Take that, mischief-makers!
Elusiv Virtual Machines: No need to be a crypto whiz to deploy zk proofs with Elusiv! Its user-friendly Elusiv Virtual Machines (VMs) allow developers to effortlessly deploy zk proofs for their own unique use cases, without getting lost in the complexity of cryptography.
Easy to integrate SDK: Elusiv’s SDK (Software Development Kit) is designed with simplicity in mind. It’s a breeze to integrate for private sending programs, and in the future, for VMs too! Say goodbye to coding headaches and hello to smooth sailing with Elusiv.

In a nutshell, Elusiv is the privacy pioneer that brings affordability, compliance, simplicity, and innovation to the table. With its cutting-edge features and user-friendly approach, Elusiv is the life of the privacy party in the blockchain space!

How Does Elusiv Compare to Other Blockchain Projects?

Let’s take a closer look at Elusiv and Solana by comparing Elusiv to other blockchain projects that focus on privacy. It’s always good to have a little friendly competition, so we can see how Elusiv stacks up against other pioneers in the space. Who knows, it might just inspire some innovation!

Tornado Cash: Tornado Cash is a widely recognized privacy protocol on the Ethereum blockchain that empowers private transactions using zk-SNARKS. However, it has garnered attention due to its use in illicit activities. On the other hand, Elusiv aims to achieve a middle ground between privacy and compliance with decentralized mechanisms. It ensures that privacy does not jeopardize security.
Zcash: Zcash is a well-liked cryptocurrency with a strong emphasis on privacy, utilizing zk-SNARKS for confidential transactions. The option of “shielded” transactions ensures that transaction details remain private. Nonetheless, Zcash has a more narrow focus on providing a private cryptocurrency, while Elusiv tackles a wider range of privacy concerns across the Web3 landscape.
Monero: Monero is a well-known cryptocurrency that prioritizes privacy, utilizing ring signatures and stealth addresses for transaction confidentiality instead of zk-SNARKS. Although it enjoys a solid reputation for privacy, Monero’s use is restricted to its own blockchain and lacks the comprehensive privacy toolset for Web3 that Elusiv provides.

Conclusion

Elusiv Protocol is revolutionizing the world of blockchain transactions by providing a much-needed privacy layer through the use of Zero-Knowledge proofs.

With Elusiv, users can transact without revealing their personal information to the world, striking the perfect balance between privacy and compliance. By leveraging the Elusiv Pool and making transactions at different frequencies, users can stay elusive and protect their privacy while conducting transactions on the blockchain. Elusiv’s architecture, combined with Solana’s technology, offers a compelling solution to the privacy puzzle in the crypto world, making it a perfect match for users who value privacy and security in their digital transactions.