Privacy on Aurora — A Review

The adoption of Web3 is expected to revolutionize the way we interact with the digital world in substantial ways. New business models and new experiences are brought forth by blockchain technology, but crucially, this new technology is opening up a new era of the internet marked by decentralization, where users have full control of their data and are free to transact directly without intermediaries. However, one key issue remains critical for the adoption of Web3–privacy. Without proper privacy measures Web3 will fail to position itself as a real game changer in the industry, but also, as a safer option for users compared to Web2.

In recent years, several privacy-enhancing projects have emerged on the Aurora ecosystem.These projects aim to address key privacy concerns, such as data treatment and protection, sharing of information and more. In this article we will discuss some of such projects dividing them into themes to outline the different areas of privacy development on the Aurora ecosystem.

Prify: DeFiner & 0xMonero

When it comes to DeFi, privacy is critical for DeFi users as it helps to protect their sensitive information, maintain transaction confidentiality, and improve overall security. Without privacy protections, the potential benefits of DeFi, such as financial inclusion and decentralization, could be undermined, leading to greater risk and decreased trust in the system. In recent years, the term PriFy has gained popularity, as it captures the essence of new privacy enhancing projects focused at addressing these privacy concerns for their users. In the Aurora ecosystem there are two such projects, OutDiD and 0xMonero. Let’s take a look at them.

First, let’s look at DeFiner, a project that provides a permissionless and configurable decentralized lending protocol. The platform offers a range of financial services, including savings, loans, and payments, all powered by digital assets. By using DeFiner, users are able to lend, borrow, and earn digital assets within a global network, without the friction and costs typically associated with conventional financial services.

One of the key features of DeFiner is its flexibility. Users are able to set their own rates and terms when borrowing or lending, providing maximum control over their financial transactions. This can be particularly useful for individuals or businesses that may not have access to traditional financial services or are looking for more customized financial solutions.In addition to its flexibility, DeFiner also offers a range of benefits for those embracing the new, digital economy. By using DeFiner, users are able to unlock instant value from their assets and participate in a global network of decentralized finance. This can help to promote financial inclusion and democratize access to financial services, which is a key goal of the decentralized finance movement.

The platform allows users to protect their privacy and retain full ownership of their data. This is crucial, as centralized lending platforms often require users to reveal sensitive information like their credit score, income, and personal details. DeFiner’s decentralized lending protocol enables users to access credit without compromising their privacy, making it an attractive alternative to traditional lending platforms.

The second project is 0xMonero, a privacy-focused project that operates on NEAR, Aurora, Ethereum, Fantom, Polygon, and other popular chains and L2s. The project aims to provide a common good without ICO, VC, or team tokens. All 0xMR tokens were mined into existence, and the team operates a mixer and private bridge from Ethereum to the BNB chain called 0xTIP. This allows for off-chain transactions and accepts 0xMR tokens as payment for mixing and bridging fees. 0xMR tokens can be traded on Jumbo Exchange on NEAR Protocol and Trisolaris on Aurora, and they are also accepted on NEAR.casino, which offers thousands of games, live dealers, and sports betting.

Data Privacy Solutions: Fractal & okSign

Data privacy is one of the most problematic issues affecting internet and digital users who, over the years, have been increasingly exposed to data breaches and saw their private data being stolen or misused by third parties. When it comes to addressing this problem, Fractal and okSigns, are two projects moving into the right direction to restore privacy and users sovereignty over their personal information.

Fractal is a project that focuses on incentivizing users and businesses to exchange data in a privacy-preserving way. The platform aims to restore user sovereignty and balance the business-to-user dynamic. Fractal provides a decentralized marketplace where users can share their data with businesses in a secure and privacy-preserving manner. Users are rewarded for sharing their data, while businesses gain access to valuable insights without compromising user privacy. This project is significant as it addresses the growing concerns over data privacy and empowers users to take control of their data.

A second, and very interesting project when it comes to data protection and privacy is OutDid a privacy-enhancing project that is focused on building a Sybil-resilient decentralized and Zero-Knowledge filtering of Blockchain users of DApps. The goal of this project is to provide a secure and trustworthy way for DApps to verify the demographic information of their users, without compromising their privacy.The term Sybil-resilient refers to a system that is resistant to Sybil attacks, which occur when a single entity creates multiple identities to manipulate or control a network.

In the context of OutDid, this means that the system is designed to prevent bad actors from creating multiple fake identities to gain access to a DApp. Zero-Knowledge proofs are a cryptographic tool that allows one party to prove to another party that they know a certain piece of information, without revealing any additional information. In the context of OutDid, this means that users can prove their demographic information to DApps without revealing any other personal information.

Overall, OutDid aims to provide a privacy-preserving solution for DApps to verify the demographic information of their users. This can help to increase trust and transparency between DApps and their users, while also protecting user privacy.

Another project worth mentioning when it comes to data protection is okSign, a cryptographic e-signature solution. Unlike market incumbents like Docusign and HelloSign, which rely on centralized Web2 servers to digitally sign and store their customer’s confidential documents, okSign leverages the security and decentralization of the Aurora blockchain to create NFTs that serve as digitally signed documents.

By using okSign, users can send, sign, and store their confidential documents securely and privately. The use of NFTs ensures that each signed document is unique, verifiable, and tamper-proof, providing an extra layer of security to users. With okSign, users no longer have to worry about their confidential information being stored on centralized servers that are vulnerable to hacks and data breaches. Instead, they can have the peace of mind that comes with using a decentralized and secure solution that protects their privacy and data.

Infrastructure: 1RPC & Automata Network

1RPC is a free RPC relay that aims to eradicate metadata exposure and leakage with a one-click experience for users. As a proxy layer that shields user data before it reaches existing RPC endpoints, it does not collect or store user metadata in any part of the relay journey. Recently, 1RPC has extended its support to NEAR Protocol and Aurora, making it more accessible for users on these networks.

Automata Network is a decentralized middleware service protocol that protects fairness and privacy in Web3. Its product kit includes 1RPC, 2FA Guru, NFTFair, AnyDAO, and XATA, which provide privacy solutions accessible for everyday users. With its non-intrusive integration across multiple chains, Automata Network is designed to make privacy and security more accessible in Web3.

Decentralized VPN Solution: Orchid

There are numerous benefits that come from using VPNs as they are a useful tool to preserve online privacy. However, decentralized VPN solutions are superior to centralized ones in several ways. They are censorship resistant, they put users in control of their data and they are more resilient to network failures and attacks.

Since last year, such a decentralized VPN option has been available on Aurora. Orchid is a platform that enables an onion routing network incentivized by OXT and a multi-hop VPN client. The platform is based on open-source software and aims to enable a freer and empowered future. With Orchid, users can surf the internet securely and anonymously, without their activities being monitored or traced.

The emergence of privacy-enhancing projects on the Aurora ecosystem is significant for the adoption of Web3. These projects help to address the concerns over data privacy, security, and user sovereignty, which are critical for the growth of decentralized applications. With the increasing focus on privacy in the digital world, these projects are likely to play a significant role in shaping the future of Web3. Stay tuned for cyclical updates on the evolution of privacy on the NEAR and Aurora ecosystems!

About Cypherpunk Guild

The Cypherpunk Guild is a group of privacy-minded developers, marketers, and entrepreneurs, jointly collaborating to pioneer a future built around private transactions on NEAR Protocol and the larger crypto-verse. Led by two second-generation Cypherpunks, the Cypherpunk Guild supports the development of private applications on the Open Web, as a means of safeguarding user privacy and freedom.

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