Seeding privacy with Namada: private gas seeding and cross-chain asset use
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Shows Namada use cases: seeding fresh addresses with ETH for gas, moving assets into Aleo or ATOM privately, and acting as a bridge between transparent chains and Penumbra, while breaking linkability.
Key claims
Users should seed new addresses and use distinct ones per dApp to preserve privacy
Namada can retrofit privacy onto assets created on transparent chains
Seeding Privacy using Namada
After diving into the ZK tech that underlies @namada’s asset-agnostic privacy solution yesterday, it’s time to have a look at some basic use cases of Namada’s multi-chain privacy infrastructure. 🟡🥷
On programmable settlement layers, users need the native asset to pay for fees & gas.
In these cases, Namada can be used to seed new accounts on Ethereum (or other smart contract platforms), which can later on be used to interact with the diverse dApps and pay for the necessary fees and gas.
⚠️ Note: If you plan to use Namada in a privacy-preserving way to seed new addresses, you should send to newly created addresses and use distinct new addresses to interact with each dApp, even if the ETH is seeded from the Namada shielded set.
Namada can also be used to seed privacy to users who want to use an asset originating from one base chain on another chain, without losing privacy.
Example: a user needs ETH (currently on transparent Ethereum) to use a dApp on @AleoHQ (with private execution).
To do this privately, the user can:
🟡 Transfer the ETH from Ethereum to Namada’s unified shielded set
🟡 Use it to seed the ETH on Aleo, breaking the linkability between the ETH on Ethereum and the ETH used in Aleo.
So, Namada basically allows to retrofit privacy to assets that were created and already used in transparent chains.
Someone who wants to use ATOM privately for example can simply:
🟡 Transfer ATOM from the Cosmos Hub to Namada’s unified shielded set
🟡 Perform the transfers within the shielded set or transfer them back to a new account on the Cosmos Hub – thereby breaking linkability.
For application-specific chains, like @penumbrazone, Namada can act as a private bridge between transparent and private chains, where users keep assets private in Namada, and then bridge them to Penumbra for private DeFi.
And this is just scratching the surface of what @namada can do! With shielded actions, Namada can also interoperate directly with dApps on other networks or app-chains like Osmosis, to allow users to interact with dApps without compromising privacy.
Stay tuned for an explainer on shielded actions tomorrow! 👀
All of this is powered by Namada's MASP & CC circuits, that I have covered yesterday, here! 👇
🔗 twitter.com/zerokn0wledge_/status/1721857782117228598
That’s a wrap for today! Stay tuned for more Namada content and make sure to follow me @zerokn0wledge_ and @namada to stay up to date with the most recent developments! 🟡🥷
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What came next · since 08 Nov 2023
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This explainer walks through how things work without making a call on the token, so price moves since publication are shown as market context.
Since then
Zero has written 9 more pieces on Namada since this one.
- Namada's free market launch: why a fully liquid day-one token was deliberateOn Namada
- Namada: the multi-asset shielded pool and its valuation gap to ZEC and XMROn Namada
- NAM listing: Namada as Zcash on steroids at a fraction of ZEC valuationOn Namada
- Namada mainnet phase 5: shielded pool, MASP and selective disclosureOn Namada
Daily closes in USD from DefiLlama and Yahoo Finance. Only a bullish or bearish call in a thesis or market take is tracked; explainers, lists, maps and mentions are neutral context. Not financial advice.