Incognito, a privacy-focused Blockchain project, has decided to allow anonymous transactions to take place on Ethereum DeFi.
This is a new privacy and interoperability project that aims to increase anonymity. So, as part of that purpose, it is launching private versions of Ethereum’s DeFi platforms.
Anonymity at DeFi
The Kyber initiative is the firm’s first and was announced on April 24, at which point it began conducting large-scale tests.
The project is reported to start enabling anonymous transactions on the Kyber Network main network in May. Later the firm behind the project plans to launch support for other DeFi platforms such as 0x and Uniswap.
How does it work?
The privacy technology used by the project is based on the same technologies used by Monero (XMR). However, they differ in that Incognito focuses on interoperability with other blockchains and supports private tokens.
In this way, Incognito allows its users to anonymize their ETH by creating a sort of shielded “copy” in the side chain using “zero knowledge tests” and blocking the amount of the original tokens on Ethereum.
Then, transactions involving this shielded ETH, called pETH, are run in incognito mode and become completely anonymous. And therefore allowing anonymous transactions on Ethereum DeFi
Andrey Bugaevski, leader of the Incognito ecosystem, assured the media that the goal of the project is to create a universal side chain for public Blockchains to benefit from privacy features.
In this way, the platform is expected to implement support for Kyber mainnet and 0x on May 7 and 17, respectively, with Uniswap and Compoun scheduled for June.
Also, another interesting element pointed out by the leader of the Incognito ecosystem, the project does not place an additional burden on the Ethereum Blockchain, implying close to zero transaction fees.
Does it have potential?
The launch of its mainnet was carried out on October 31, 2019, which makes it a fairly young project. However, the team has achieved many important milestones since then, with their latest move being integration into DeFi.
At the moment, the functions can be accessed through a wallet on mobile devices.
A very important aspect pointed out by Bugaevski is that the firm is not working to build a new privacy currency. This ensures that we do not need a new Monero or a new Zcash.