Sahara Protocol
Published in

Sahara Protocol

Blockchain privacy in 2021: Where are we at?

By presenting users with opportunities that aren’t offered by traditional financial systems, blockchain technology has continuously expanded investment opportunities in the 21st century. Blockchain operates on decentralized financial (DeFi) systems, which don’t require the user to consult an intermediary or escrow in order to manage their transactions. This means that the process of lending, borrowing and trading is easier than it has ever been before. Sounds awesome, right?

Well, it is. Apart from the fact that DeFi is significantly less secure than traditional banking when it comes to privacy.

Why has privacy become so important in blockchain finance?

First launched as a peer-to-peer network that breaks free from regulated financial systems, the blockchain market has grown dramatically over the last ten years. The total value locked across all DeFi protocols hit a record high above $270 billion in early November. With more and more people wanting to kick off their investment journeys, it’s predicted that this figure will consistently rise throughout 2022. Blockchain technology offers users more financial freedom than ever before but, as the community continues to grow at a record-breaking pace, privacy is becoming an increasingly large issue.

Although traditional financial systems don’t offer the same benefits as blockchain technology, they promise to hide the details of your transactions from the rest of the world. When you put your money into a bank, your financial information is automatically protected from prying eyes. You can send and receive money without taking extra precautions. Not only that, but you can rest assured that the balance in your account is a private matter for your eyes only. Things couldn’t be more different in the blockchain world.

Privacy is key when it comes to managing your personal finances but, as we mentioned before, this is where blockchain technology lacks. Without a middle-man to protect your transactions, blockchain technology doesn’t offer the same level of privacy as traditional financial systems. Whilst this can open up a world of financial opportunities for users, it also compromises their privacy by documenting every transaction in real time on a public ledger.

Privacy and blockchain: What’s the problem?

Transparency is one of the biggest strengths of blockchain technology, but it can also leave users feeling vulnerable about the visibility of their transactions. Put it this way, anyone with access to your digital wallet address has the ability to track the exact movement of your investments.

This level of visibility can quite easily be compared to following someone on social media. As soon as someone follows your account, they can learn all about your history, where you’ve been, and how you like to spend your money. With this comparison in mind, the solution seems simple, right? All you need to do is put your account on private mode. Well, unfortunately, it’s not always that easy. For new and seasoned traders alike, the process of gaining privacy on the blockchain can be difficult to navigate.

As the demand for privacy continues to grow, an increasing number of protocols are entering the market and offering new ways to protect your transactions. However, the majority of these protocols operate on separate chains with separate tokens. They require you to compromise the value of your investments by asking you to transfer your assets onto a different platform and activate the privacy protocol there. Think of it this way: in the current market, you can’t put your Facebook profile on private mode and expect your Instagram account to instantly have the same level of privacy.

If you ask us, solving the privacy problem doesn’t have to be such a complicated process. Wasn’t blockchain technology created to give users more freedom in the first place? Trying to protect your financial information shouldn’t have to be such a huge ordeal. If anything, you should be able to do it at the click of a button. Spending so much time worrying about your privacy seems silly, when you could be planning your next investment or scanning the market for new opportunities.

All you need is a multi-chain protocol that can break the link between the sender and recipient. (PS: That’s exactly what we’ve done.)

Who’s trying to solve the problem?

Before we pitch our protocol, let’s take a minute to talk about some of the biggest multichain privacy players on the market. Panther is an end-to-end protocol engineered to increase privacy for those trading in DeFi platforms. The platform functions by using zk-SNARKs, a type of zero-knowledge cryptography, and builds on multiple blockchains such as Ethereum, Polygon, Flare, and Avalanche. Sienna, a DeFi protocol that focuses on programmable privacy, similarly permits a private lending, borrowing, and trading experience through the use of smart contracts. Set to launch in April 2022, there’s no doubt that this platform will play an essential role in combating the blockchain privacy issue.

Unlike other privacy protocols that are currently on the market, Sahara will protect your financial information without asking you to convert your assets to a separate chain. This means that you don’t have to worry about the drawbacks that accompany cross-chain exchanges, such as a decline in your original investment or the possibility of your transaction history being traced. By integrating our protocol onto the Polygon, Ethereum, and Binance Smart Chain blockchains, Sahara enables you to keep the benefits of blockchain technology and continue trading without restrictions. The best news of all? Our test platform is already live, and we’re inching closer towards launching our protocol for everyone to use. Start your year off the right way by choosing Sahara to keep your investments private. The way that they should be.

Keep up with our developments on Medium, Twitter, and Telegram.

--

--

--

Sahara Protocol’s publication is our editorial for a mission to bring privacy back to blockchain finance. We cover blockchain, privacy, trading, synthetic assets, DeFi, and project updates in articles you’ll actually want to read and follow.

Recommended from Medium

Why We Join THiNG.FUND

POCKET WALLET TEAMS UP WITH MERCURYO TO ENABLE EASY BUYING OF CRYPTO WITH BANK CARDS

Overview of Konomi’s Bad Debt Treatment Procedure from Asset-backed Securitisation’s Perspective —…

Royal Blood — Honeybrains

💣RECAP OF AMA WITH KROSS COIN💣

DRAGON WAR AND SOLSEA ESTABLISHED A STRATEGIC PARTNERSHIP

LINE Blockchain Weekly Report (2020.10.13~2020.10.19)

قم بتحميل Cryptocat Cryptocurrency Bitcoin Ethereum Prices 1

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
Sahara Protocol

Sahara Protocol

A DeFi-ecosystem that connects real world value with blockchain, in complete privacy.

More from Medium

cLA.Labs x Duckie Land

Poolz Obtains $1M Grant from Harmony to Boost Growth of Emerging DeFi Startups

How has blockchain privacy changed since 2013?

OccamFi Now Enjoys Full Interoperability and Cross-Chain Features with ChainPort