Exploring the Future of Privacy-Preserving DeFi: Insights from the DeCC Day X Shielding Summit

Exploring the Future of Privacy-Preserving DeFi: Insights from the DeCC Day X Shielding Summit

Privacy remains a critical yet challenging frontier. The DeCC Day X Shielding Summit brought together thought leaders and innovators to discuss the current state and future of privacy-preserving DeFi. Moderated by Carter Woetzel of Shade Protocol, the panel featured Supdoggie of SilentSwap, Adam Gagol of Aleph Zero, and intergovernmental expert Anndy Lian. The panel dives into their insights on the importance of privacy in DeFi, the hurdles faced by developers, and the potential pathways to broader adoption.

The Importance of Privacy in DeFi

Privacy in DeFi is not just a feature; it’s a necessity. As Carter Woetzel pointed out, “Privacy and the concept of shielding assets in DeFi have been around for a long time, yet adoption has lagged.” The panelists agreed that privacy is crucial for protecting user data and preventing malicious activities like front-running, where traders exploit transaction information for profit.

Anndy Lian, a governmental blockchain advisor, emphasized the significance of privacy from an investment perspective. “I realized that privacy is really important,” he said, drawing from his experience in the medical field where data breaches are a major concern. Lian’s journey into privacy began with creating a blockchain-based medical record system, highlighting the cross-industry relevance of privacy solutions.

Challenges in Privacy-Preserving DeFi

Despite its importance, privacy in DeFi faces significant challenges. Adam Gagol of Aleph Zero noted, “Right now, it has terrible user experience because the proof generation times are over 10 seconds for most products.” This technical hurdle, coupled with the complexity of privacy protocols, deters users who are accustomed to more straightforward financial interactions.

Regulatory barriers also play a significant role in stifling adoption. Supdoggie pointed out that “the biggest problem is regulation,” citing the example of Tornado Cash, a privacy tool classified as a mixer and banned in many jurisdictions. This regulatory uncertainty creates a hostile environment for privacy-focused projects, limiting their growth and accessibility.

Overcoming the Hurdles

To overcome these challenges, the panelists discussed several strategies. Improving user experience is paramount. As Adam Gagol mentioned, “We’re trying to build a wallet that looks like a regular wallet so that you don’t immediately even notice that this is a private wallet.” By simplifying the user interface and reducing the complexity of privacy features, developers can make privacy-preserving DeFi more accessible to the average user.

Another approach is to address liquidity issues. Supdoggie explained that SilentSwap is tackling this by “borrowing liquidity from public blockchains but transacting or swapping privately.” This innovative method allows users to benefit from the liquidity of public networks while maintaining privacy.

The Path to Adoption

The path to widespread adoption of privacy-preserving DeFi involves not only technical improvements but also strategic marketing and community building. Anndy Lian highlighted the importance of creating demand: “If you don’t have users, you don’t have liquidity. If you don’t have liquidity, you have nothing.” Building a strong community and generating excitement around privacy features are crucial steps toward achieving critical mass.

Carter Woetzel added that the race between privacy-first projects and traditional DeFi platforms integrating privacy features will be pivotal. “The Uniswaps of the world are going to start adding in privacy features,” he noted, suggesting that the first to successfully combine privacy with liquidity and user-friendliness will gain a significant advantage.

The Future of Privacy-Preserving DeFi

Looking ahead, the panelists were optimistic about the future of privacy-preserving DeFi. Adam Gagol predicted that “the proof generation time for the majority of use cases will stop being the topic of conversation because it’s going to be low enough to be actually useful.” As technical barriers diminish, the focus will shift to broader adoption and integration with existing financial systems.

Anndy Lian emphasized the need for collaboration and integration with larger platforms. “Instead of them creating that demand, the real true blue privacy guys should go there and say, ‘Hey, can we integrate? Can we do something together?'” By partnering with established players, privacy-focused projects can leverage existing networks to reach a wider audience.

Conclusion

The DeCC Day X Shielding Summit highlighted both the challenges and opportunities in the realm of privacy-preserving DeFi. As the panelists discussed, the road to adoption is fraught with technical, regulatory, and market challenges. However, with innovative solutions, strategic partnerships, and a focus on user experience, the future of privacy in DeFi looks promising. As Carter Woetzel aptly summarized, “Private DeFi is good. Can we find the demand and do it before someone else integrates privacy with large-scale distribution?” The race is on, and the stakes are high.

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

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Telegram’s policy shift raises privacy concerns

Telegram’s policy shift raises privacy concerns

The Telegram messaging app recently made a significant update to its privacy policy, which has raised privacy concerns among its users.

Telegram will start sharing user data with relevant authorities in response to valid legal requests.

The messaging app will share the IP addresses and phone numbers of users who violate the app’s rules, Telegram CEO Pavel Durov announced on Sept. 23.

The policy update raises concerns for privacy-preserving technologies, considering that it contradicts Telegram’s foundational principles, according to Anndy Lian, author and intergovernmental blockchain expert.

Lian told Cointelegraph:

“[This] highlights the ongoing tension between regulatory compliance and the protection of user data […] The concern is that such compliance could set a precedent, encouraging other privacy-focused services to follow suit, thereby eroding the privacy standards that users have come to expect.”

The new policy represents a significant change in Telegram’s user guidelines following concerns raised about the potential misuse of the platform for illegal activities. The policy shift occurred on Aug. 24, a month after Durov was arrested in France.

Telegram policy update should discourage criminal activity: Durov

While Telegram’s new policy update could raise privacy concerns for the messenger app’s users, it mainly aims to curb criminal activity on the platform.

As part of Durov’s efforts to make Telegram safer, the app implemented artificial intelligence algorithms and human moderators to remove all the “problematic content” from Telegram Search.

The new policy shift aims to make Telegram Search safer for users and deter criminal activity, wrote Durov:

“These measures should discourage criminals. Telegram Search is meant for finding friends and discovering news, not for promoting illegal goods. We won’t let bad actors jeopardize the integrity of our platform for almost a billion users.”

Telegram is the world’s fourth most popular online messenger app, with over 900 million monthly active users as of April 2024, according to Statista.

Related: China still controls 55% of Bitcoin hashrate despite crypto ban

Meta and WhatsApp are already sharing user data with authorities

While Telegram’s policy shift may come as a surprise, it is not unprecedented among the world’s top online messaging apps.

WhatsApp, currently the largest messenger app by users, is widely known for sharing user data with law enforcement, according to the application’s privacy policy, which states:

“Based on the circumstances, we may disclose information to law enforcement in response to an emergency disclosure request where we have a good faith reason to believe that the matter involves imminent risk of serious physical injury.”

These policies are similar to Meta’s Messenger, which also complies with requests from authorities.

Since July 2013, Meta has complied with over 301,000 requests from authorities, providing user data for over 77% of the total 528,000 legal requests received, according to Meta’s policy page.

 

Source: https://cointelegraph.com/news/telegram-policy-shift-privacy-concerns

 

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

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Navigating the privacy paradox in Web3: Insights from DeCC Day at Consensus 2024

Navigating the privacy paradox in Web3: Insights from DeCC Day at Consensus 2024

Web3 privacy emerges as a central theme, often heralded as a fundamental human right yet paradoxically elusive in the digital realm. The DeCC Day panel at Consensus 2024, titled “The Importance of Privacy in Web3,” brought together a diverse group of experts to unravel this complex issue.

Adryenn Ashley, a venture capitalist and founder of Slay Ventures, opened the discussion with a provocative introduction. She highlighted her background in creating a dating app that prioritised privacy and consent, leveraging blockchain technology. Her energetic tone set the stage for a dynamic exchange of ideas.

Seth, known in the crypto community as ‘MineyourBiz,’ identified himself as a privacy advocate to the point of affliction. His commitment to evaluating technologies for market viability and technological soundness has led him to monitor major waves in privacy tech and interview many privacy-oriented founders.

Sandy Carter, COO of Unstoppable Domains and founder of Unstoppable Women of Web3 in AI shared her company’s efforts in creating a digital identity platform that empowers users to control their personal information. She underscored the importance of allowing individuals to decide what they disclose, framing privacy as a choice rather than a given.

As a book author and fund manager from Singapore, I was also a part of this panel and naturally emphasised the significance of privacy, offering a unique perspective as both an author and investor.

Debating privacy: Universal desire vs curiosity and government oversight

The panellists engaged in a spirited debate over the nature of privacy and its perception among individuals and governments. Seth argued that privacy is a universal human desire, transcending cultural and political boundaries. However, Ashley countered that while individuals crave privacy, they are equally curious about others’ lives, driven by a systematic craving for information.

The conversation turned when I discussed the consumer’s role in the privacy equation. I posited that consumers must care about their privacy to be effectively protected, citing the use of Zero-Knowledge Proofs (ZKPs) in blockchain applications to preserve user anonymity while enhancing user experience.

Carter expanded on this by discussing the role of digital identities in managing privacy settings, allowing users to share information with applications selectively. This approach, she argued, respects the individual’s right to privacy while acknowledging the varying degrees of openness each person is comfortable with.

Also Read: Embracing the NFT revolution: Insights from Anndy Lian’s NFT.NYC speech

The panellists also tackled the thorny issue of government surveillance and regulation. Seth highlighted the lack of consideration for privacy in government discussions, often viewed as an inconvenience rather than a necessity. I shared insights from his direct advisory role with governments, revealing that while on-chain activities might be challenging to trace, off-chain actions, particularly cashing out to fiat, are transparent and traceable.

As the discussion drew close, the panellists agreed on the importance of trust in the relationship between privacy, governments, and the public. Austin Arnold, Co-Founder of Altcoin Daily, closed the panel by emphasising that privacy builds confidence and trust, which are crucial for market movement and engagement.

Privacy in Web3: A cornerstone for the future

In the digital tapestry of Web3, privacy is a beacon of individual autonomy, a principle ardently debated and fiercely defended. The DeCC Day panel at Consensus 2024 illuminated the intricate dance between personal discretion and societal transparency. The discourse traversed the spectrum of privacy—from a fundamental human yearning to a nuanced societal construct, challenging the audience to reconsider their own stances on the matter.

The panellists, each a vanguard in their respective fields, unravelled the privacy paradox with eloquence and insight. They painted a world where privacy is not a relic of the past but a cornerstone of the future—a future where trust is the currency and privacy is its mint. The dialogue underscored the imperative for privacy to be more than an afterthought in the Web3 narrative; it must be the plot itself.

As the conversation drew to a close, the consensus was clear: privacy in Web3 is not just about the right to secrecy but the right to agency. It is about crafting a digital realm where individuals navigate with confidence, empowered by the sovereignty over their data. The panel at DeCC Day did not just discuss privacy; they championed it, urging us to envision a Web3 ecosystem that is as secure as it is open, as private as it is communal.

In this era of technological renaissance, the panel’s insights serve as a compass, guiding us toward a more equitable and private digital future. The importance of privacy in Web3, as articulated by these thought leaders, is a clarion call to action—a call to protect what makes us human in a world that is increasingly digital.

The full video can be found here.

 

 

Source: https://e27.co/navigating-the-privacy-paradox-in-web3-insights-from-decc-day-at-consensus-2024-20240622/

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

j j j