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clarify privacy properties of the protocol #1557

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TalDerei opened this issue Jul 25, 2024 · 2 comments
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clarify privacy properties of the protocol #1557

TalDerei opened this issue Jul 25, 2024 · 2 comments
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documentation Improvements or additions to documentation privacy

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@TalDerei
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TalDerei commented Jul 25, 2024

As an extension of #1548, we should aim to transparently and concisely communicate the privacy features we currently support (and plan to support in the future). The privacy properties of the protocol can be confusing since they're not immediately clear. Besides refactoring our guide, it’s not entirely clear what the best way to communicate this is. See penumbra-zone/penumbra#4695 for relevant scope.


1. Sealed-Bid Batch Swaps: currently, batch swaps execute all intents within a block and the assets being swapped are public. "Sealed-bid" batch swaps would protect the privacy of the input assets by not revealing them publicly.

2. Flow Encryption: Swap amounts are currently public. "Flow encryption" would hide these values and offer front-running protection by encrypting individual swap amounts. Validators aggregate these encrypted values, decrypt the batch totals, and reveal them publicly. This ensures that individual swap amounts remain private.

In V2, these features would allow only the batch totals to be publicly revealed while keeping the individual assets and values in a swap private.

cc @grod220

@TalDerei TalDerei added documentation Improvements or additions to documentation privacy labels Jul 25, 2024
@github-project-automation github-project-automation bot moved this to 🗄️ Backlog in Penumbra Web + Not Web Jul 25, 2024
@grod220
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grod220 commented Jul 25, 2024

Yes, please. Does this more properly belong in https://github.com/penumbra-zone/guide though?

@TalDerei
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Yes, please. Does this more properly belong in https://github.com/penumbra-zone/guide though?

good point, will move 👍

@github-project-automation github-project-automation bot moved this from 🗄️ Backlog to ✅ Done in Penumbra Web + Not Web Jul 25, 2024
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