Mutual benefits from Privacy protection and cross-chain technology in DeFi
With the completion of Ethereum cross-chains, POFID has recently been building BSC-based cross-chains. On April 12, the currency price market was booming. Last week’s falling market volatility, panic — induced selling has been temporarily receded. BTC is back at $60,000 and ETH is hovering around $2,150. In the past two weeks, the price of BNB has skyrocketed to $637 today.
The market reflects users’ confidence in Binance as a company, and POFID’s current cross-chain progress is playing its part in the development of BSC. It is important to note that POFID differs from the generic DEFI platform in that it provides privacy-protected financial asset management.
This article will briefly analyze the cross-chain trends and privacy protection issues that inevitable in the DEFI field, as well as the practical integration of the two by POFID.
Cross-chain necessitate privacy protection
The idea of cross-chain is still hot and popular in the field of DeFi, countless companies and users are enjoying the convenience brought by cross-chain. However, in the process of cross-chain transaction and DeFi assets management, there are still a lot of loopholes in the protection of assets. Although blockchain technology solves the decentralization of transactions and increases traders’ trust in transactions, the transparent private information and the amount of assets cause excessive exposure of privacy on the Internet.
For the general currency system, only the use of the query key to query the assets in the encrypted account and the amount of assets, which is equivalent to the “I” Paypal balance or my credit card arrears only I can know. Also, if “I” transferred money to my mother, only she and I would know about the transaction. A third person would have to have both me and my mother’s passwords.
No one is willing to expose his assets to the public, but in fact the existing stable currency based on block chain system (including the Ethereum DAI), basically do not have such privacy protection mechanism, they are the only privacy depends only on the block chain accounts and individual identity information is not right to protect assets such as privacy, namely the account if you do not take the initiative to the query. But in fact, it can be traced to the natural person behind the related unexposed account information through the asset circulation chain according to the account whose identity information has been exposed.
How does POFID protect privacy
POFID ’s OCA underlying public chain technology, based on zero knowledge proof of privacy protection, support Turing complete smart contract, with technology to practice privacy protection. For example, the account privacy and the assets in the encrypted account. An account in the POFID system cannot be queried through the block browser or other public means. Only with the account private key or the query key can the account assets information be obtained. Moreover, in the transaction, the transaction or payment information sent between accounts cannot be publicly searched, and the content of the transaction can only be known if the private keys or query keys of both accounts are possessed. In addition, in terms of the input and output privacy of smart contracts, smart contracts including PSC (currency management contract) can selectively handle the privacy protection of the input and output assets or other conditional data.
Privacy-conscious cross-chain is coming to BSC
POFID’s ETH cross-chain deployment was completed in mid-March. The cross-chain development of head public chains in other trading markets such as BSC and TRON is also about to be completed, especially the cross-chain development of BSC has entered the final testing stage. As one of the world’s leading decentralized exchanges, BSC users can trade freely with the privacy protection of POFID tokens, as well as the pledge of mining on the platform. The BSC Ecosystem will be able to provide privacy-protected transactions for every user on the chain, mapping real assets on the chain into a quantifiable digital asset. Both homogeneous and heterogeneous assets can be supported, and other digital assets with various financial properties can be generated as collateral against these assets. The POFID DAO will be the world’s first DEFI project that is compatible with both full mainstream digital assets and high TPS. Upon completion, the program will reintegrate the DEFI market based on digital assets and drive the market to new prosperity.