In a recent interview with BeInCrypto, Alan Scott, a researcher at Railgun, elaborated on the recent endorsement by Ethereum co-founder Vitalik Buterin.
This endorsement highlights the advancements and the unique privacy features that Railgun aims to bring to the decentralized finance (DeFi) sector.
DeFi Through Zero Knowledge Proof Tech
Railgun leverages zero-knowledge proofs (zk-SNARKs) to ensure user privacy while interacting with DeFi applications.
“Zero-knowledge proofs allow users to prove a statement’s truth without revealing the actual information. In Railgun’s case, users can prove they own a specific balance of encrypted tokens in the Railgun smart contract, enabling privacy-preserving transactions,” Scott told BeInCrypto.
The project stands out in the DeFi space with its ability to perform cross-contract calls privately. This innovation allows users to engage in various DeFi activities, such as swapping and farming, from a privacy-preserving externally owned account (EOA). “This feature is a huge advantage,” Scott noted, and “it’s encouraging to see recognition from one of the greatest minds in the space.”
Vitalik Buterin’s endorsement has invigorated the Railgun team, sparking new initiatives and driving execution. While new collaborations have not yet materialized, the endorsement boosts the project’s credibility and motivates contributors to enhance DeFi privacy solutions.
Read more: What is Railgun? A Guide to the EVM Privacy Protocol
Railgun’s features include Private Proofs of Innocence, which help users demonstrate non-interaction with malicious actors on-chain. This technology ensures that users are not sharing a system with nefarious addresses. Additionally, Railgun integrates auditability features, such as a view-only private key, enabling users to reveal transaction graphs to third parties and integrate with tax software like Koinly.
Scott emphasized the importance of both technology and education in addressing privacy challenges. This approach pushed Railgun into developing comprehensive documentation and active community presence on platforms like Telegram and Discord.
“The best approach to these kinds of challenges is tech and education based. It’s about demonstrating from a technical standpoint not only how these tools work but also their practical effects,” Scott said.
Privacy on the Blockchain Should Be Easy
Looking ahead, Railgun is set to introduce two major updates. The first is Version 3, which is a complete rework of the contracts to a modular architecture. It enables new private DeFi capabilities such as leverage and reducing gas costs by up to 50% for certain transactions.
The second one is Railgun Connect, a universal privacy plugin for Ethereum Virtual Machine (EVM). It allows users to use their private balance on most DeFi platforms without requiring integration.
With these, the protocol aims to make private transactions as straightforward as public ones. Therefore, it ensures that DeFi users do not have to sacrifice privacy for self-custody and on-chain opportunities.
“The goal is to make private transactions as easy to use as public transactions such that all DeFi users can remain private with as much of the complexity abstracted away as possible. DeFi users shouldn’t be forced to choose between embracing self-custody and on-chain opportunities or giving up their valuable financial data,” Scott explained.
Collaboration within the privacy ecosystem is also a priority. Scott highlighted efforts by Ameen Solamani and initiatives like Web3Privacy.info, which compile research on privacy mechanisms. These collaborations aim to advance the understanding and implementation of privacy technologies in the DeFi space.
Read more: What are Zero-Knowledge Proofs? Securing Growth for Web3 Apps
This commitment to innovation and privacy reflects why Vitalik Buterin’s endorsement is well-deserved, spotlighting Railgun’s potential to transform the DeFi sector.