Solving Web3’s Privacy Dilemma
Introduction
Until now, privacy and compliance have been mutually exclusive. Elusiv’s vision initiates a bidirectional approach that establishes privacy remains a fundamental right while ensuring it’s not abused. By deploying zero-knowledge solutions for both encrypted transactions and compliance solutions, the challenges surrounding privacy are addressed jointly. Furthermore, the advances made in these private systems maintain decentralization and trustlessness, preserving key pillars of Web3.
The Privacy Dilemma
Web3 is hailed as “the people’s web.” Inherently rewriting the dynamics of the digital milieu, it promises to empower the individual user and instill self-sovereignty. Yet blockchains are intrinsically public and immutable, risking a paradigm worse than its predecessor Web2. To achieve this user-centric future, encryption and resulting privacy remain vital to ushering in this new connected paradigm. Power and enabling users to coordinate and transact privately shifts current economic frameworks away from surveillance capitalism, placing them in a position of power and choice where control redirects to the individual. However, the challenge is to develop solutions that preserve individual privacy while upholding security and ensuring illicit activities are not executed. How can ubiquitous privacy be accomplished while preventing this fundamental right from being exploited?
Recent events involving Tornado Cash exemplify this dilemma. The actions of ill-intentioned users resulted in the sanctioning of open-source code (the smart contracts enabling private transactions on Tornado Cash). This outcome ultimately affects the many individuals using Tornado Cash ethically. A privacy-preserving solution being deemed illegal due to the actions of a few takes away a fundamental right of many.
Bridging the gap between regulators and users
Elusiv’s holistic approach allows regulators and users to set aside their differences. Advocacy groups fight hard to bring to light the necessity of encryption of individual privacy. However, in many cases, policymakers need to gain knowledge and a proper understanding of the technology, often leading to hasty measures (like tornado cash) or pervasive legislation threatening individuals at scale. While users want to maintain privacy as a fundamental human right, regulators want to ensure safety and security while upholding other things like taxation frameworks. In consideration of both perspectives, decentralized zero-knowledge compliance solutions introduce viable options to mitigate the controversy this dilemma creates.
Privacy’s Silver Lining
Zero-knowledge proofs are an integral part of Web3’s adoption. Elusiv utilizes these cryptographic primitives to initiate privacy holistically. By coupling two ends of the spectrum, Elusiv’s approach preserves a fundamental human right while enabling regulatory measures to be executed, a silver lining in a complex problem.
Trust is vital as we depend on cooperation for a prosperous global society. Fortunately, this combination is the missing hurdle for the mainstream adoption of privacy-preserving technology. Elusiv will allow Web3 to deliver on its promise to revolutionize the connected paradigm where privacy and security are universal.
Universal encryption coming to Solana
An encrypted Solana is around the corner, powered by innovative zero-knowledge privacy. Not only will individuals be empowered, but our SDK will enable developers and builders to implement zero-knowledge encryption into new and existing applications. We are proud to bring practical privacy features to Solana and initiate our vision of a privacy-preserving future for all.
Our team has rolled up its sleeves, prepping for mainnet launch. To stay updated on our progress, follow us on Twitter and join our community on Discord.
