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CTO Time: How Will Trias Solve DeFi Pain Points(ii)

Dr. Wei, Trias CTO, will have a series of Trias Technology Sharing in Trias group( http://t.me/triaslab) from 10th Aug to 30th Aug, on every Monday & Thursday 12:00 GMT. The following is the recap of the 5th time:

Last time we ended up talking about the three pain points of current Defi, which are:
1. There are barriers to data exchange;
2. Low efficiency of security control;
3. The underlying public chain cannot achieve privacy protection
Today we’re going to talk about how Trias addresses these three pain points。

Trias considers privacy as user’s right rather than an option, so the privacy of users in DeFi transactions must be protected.In privacy technology, Trias mainly USES Stealth Addresses and Zk-snarks.

Trias is able to integrate the most advanced zk-snarks without trusted initialization for the existing DeFi product, enabling the user to protect all transactions in the DeFi product.

The combination of privacy computing and DeFi not only provides data privacy protection, but also solves the performance bottleneck of the DeFi project.The technology modules provided by Trias will ensure a very low cost of developing privacy modules, making it the first choice for DeFi projects that ensure maximum liquidity while preserving users’ financial privacy.

Trias has been keeping technology advanced through theoretical research. By using the anonymous payment module and anonymous transfer module of Trias smart contract, it is easy to build various DeFi functions, such as distributed exchange, lending and mortgage.

More importantly, we will ensure that all money transfers are privacy-protected by these complex DeFi functions, which means that the sender and receiver are anonymous and the transaction amount is confidential.

Here I introduce two use cases, also currently in the Trias pipeline:
The first is the financial risk control platform. Based on the Bitcoin UTXO model, we have made improvements and implemented private transactions by using Stealth Addresses and Zk-snarks technology.

This is the overall structure of the transaction:

We use Stealth Addresses technology to hide the addresses of both parties and Zk-snarks technology to hide the amount of the transaction.
We use the zero-knowledge proof protocol without setting the initial random number, which is more advanced to improve the operation efficiency.

We support four kinds of transactions with different levels of privacy, which are available for users to choose from.

On top of this, two important asset management functions will be developed:
Support for multi-sign accounts: Multi-sign accounts are accounts that are managed jointly by multiple users.
Each user has its own private key;

The configuration of multi-signature accounts is in the form of M/N, such as 2/3. Therefore, each transaction initiated requires two of the three users to co-sign before the transaction takes effect.

Support for publishing private Tokens: Users can issue their own tokens on current trading systems.
This token, similar to a smart contract with limited functionality, only provides the ability to transfer tokens.
But this token’s transaction records are encrypted, so that only authorized people can view them.

In the above solution, Trias makes full use of the cryptography principle of Zk-snarks, hiding the information of traders in the blockchain records, including the amount of transactions and so on.

So even if someone obtains the IP address of a wallet, other than the owner of the key, the whole transaction chain cannot be traced back to ensure the security of privacy, namely anonymity.
ThroughZk-snarks, users can only determine the operation result and obtain power of their data through non-transparent encryption credentials, but cannot know the actual data operation process and content, which fundamentally puts an end to the situation that transactions will leak privacy.

The second CASE will be a DEX under development. Its advantages are mainly reflected in the following aspects:
1. Matchmaking engine: A full memory, distributed, microservice architecture, scalable trading system.
With this matchmaking engine, it can offer matching efficiency of more than 1m transactions per second, comparable to that of a centralized exchange.

2. Business system: including account, KYC, order, transaction record, handling fee, risk control, audit, management background.

3. Smart contract: Develop smart contracts that support locking, canceling, and autopay for each of the supported chains.

4. Cross-chain atomic exchange protocol: Atomic exchange protocol guarantees that a transaction will either be fully successful or revert to its original state.
The realization of lightning network can refer to the train of thought, in each chain to establish a payment channel, forming a loop.

5. Access system: Develop business system API, connect web and APP clients.

In addition to DEX, Trias can create a variety of privacy features to enable transaction security upgrades for the existing Defi project, as well as an upcoming offline payment feature.

We are currently working on technical and community partnerships with Defi projects abroad, and will launch a decentralized private exchange product where users can trade synthetic assets via collateral tokens and can farming by providing liquidity.

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