How we address them
Privax aims to resolve these issues by introducing a private state managed by the wallet and integrating external services to help users manage Virtual Assets across blockchains without needing deep technical knowledge.
Wallet key management
Account abstraction (AA) and multi-party computation (MPC)
AA decouples account logic from the address in EVM chains, enabling smart contracts to handle actions typically reserved for EOAs. This enhances security and usability by allowing multi-signature requirements, automated transactions, and compliance measures. MPC in UTXO chains like Bitcoin enhances security by distributing key control across multiple parties. Transactions require a combination of key shares, eliminating single points of failure and facilitating compliance with decentralized control.
Compared to mnemonic keys, AA and MPC offer superior security and operational flexibility, addressing vulnerabilities in single-key systems and providing robust solutions for modern blockchain applications.
Private state management
A private state managed by the wallet is crucial for modern privacy-preserving token transfer protocols. Privax manages its private state locally, allowing pluggable computation algorithms (circuits) to run code (provers) in an isolated environment. Only the proof, compacted information about the private state, is released externally.
Examples:
DeFi Protocol Swap: A circuit prover computes proof with a private parameter (e.g., digital passport data) stored in private storage. The proof is used in on-chain transactions, validated by smart contracts.
Privacy-Preserving P2P Protocol: Notes stored in private storage are processed by designated circuits to compute nullifiers and proofs, enhancing privacy and security.
Advanced payment routing
Multiple chains host tokens like USDC. Users often need a balance and gas token in the destination chain. Integrated bridges in wallets automate this process, eliminating the need for users to manually bridge tokens. This automation, along with gasless transactions, improves user experience by handling complex routing and refund scenarios seamlessly.
Gasless transactions
Obtaining gas tokens is a challenge for users, especially without centralized exchanges. Gasless transactions allow users to transact without needing gas tokens directly. This can be achieved through various mechanisms like Permit schemes, Account Abstraction, and MEV rearrangements. A “forwarder” service can implement these approaches, ensuring a seamless user experience by eliminating the need for users to understand or acquire gas tokens.
P2P messaging and identity system
Privax requires a p2p communication layer and identity system for advanced payment routing and compliance. Encrypted p2p communication ensures private and sensitive information, like invoices and travel rule data, is securely exchanged. Privax will use an IBAN-based addressing system for message routing, ensuring standardized and validated communication between users, enhancing transaction confidence and security.
Last updated