Namada in Detail A Modular Privacy Solution for Multi-chain Ecosystems

Namada A Modular Privacy Solution for Multi-chain Ecosystems

Author: Namada; Translator: Deep Tide

Historically, the architecture of decentralized systems has forced users to commit to using specific cryptocurrencies, chains, or dApps to access privacy features.

While functional, this independent structure inherently limits the scalability and extensibility of privacy solutions. Namada disrupts this status quo by introducing the concept of “modular privacy,” a bold reconfiguration aimed at expanding the applicability of privacy features in decentralized systems.

Namada Architecture Review

The Namada protocol operates as a layer 1 solution consisting of multiple components, but the cornerstone that enables modular privacy is two key features: Unified Shield Set (USS) and Shielded Actions (SA). These elements represent a reimagining of privacy implementation in the cross-chain and broader crypto space, rather than just incremental upgrades.

• How do lawyers use AIGC to write articles? Taking Microsoft Copilot as an example.
• Thoughts on Friendtech Not optimistic about all Friendtech clones.
• NFT quietly integrates into the mainstream Fat Penguin settles in Walmart, Microsoft Xbox may integrate encrypted wallets.

Namada’s Unified Shield Set (USS)

Traditionally, in the realm of privacy, shield sets are specific to certain assets, such as Zcash’s Sapling architecture only supporting ZEC. The larger the shield set for individual assets, the stronger the privacy assurance for each user. However, decentralizing privacy in a single asset pool diminishes the efficacy of privacy assurance for low-volume assets like NFTs, as inputs and outputs are limited.

Namada overcomes these limitations with its Multi-Asset Shielding Pool (MASP), an evolution of Zcash’s Sapling technology. This forms the USS, an asset-agnostic unified shield set capable of accommodating a wide range of assets. Therefore, users can privacy-transform assets from non-private chains like Cosmos Hub, Osmosis, Stargaze, or Noble.

To optimize user experience, especially for users interacting via Cosmos and IBC, Namada has developed browser extensions and a web interface. These platforms are fully compatible with Keplr key management and offer Namada-specific functionalities.

Thus, USS provides Zcash-like privacy for all IBC tokens. Additionally, unlike traditional privacy models where tokens are typically locked, USS allows tokens to flow and transfer within the shield set.

To incentivize contributions to the shield set, enhancing user privacy, USS includes shield set rewards, a unique feature of MASP/CC circuitry. Namada governance determines which tokens qualify for shield set rewards and the target quantity.

Shielded Actions

The second cornerstone of Namada’s modular privacy is Shielded Actions (SA). This feature not only empowers users to execute transactions but also supports complex orchestrated operations across multiple blockchains, app chains, and dApps while maintaining privacy through USS. Its purpose is to grant users the ability to perform more functionalities offered by Namada itself through a unified interface that protects privacy.

The design of SA is very detailed, providing a new layer of automation in the user interface. This feature allows users to perform multiple interactions in parallel, greatly reducing complexity for end users. This design complements the innovation around cross-chain accounts (ICS-27) in the IBC and Cosmos environment.

The starting point for any shielding operation is centralized in a unified shielding set. This ensures that user identities remain shielded, making it extremely difficult for external observers to determine the origin of a shielding operation. All they can see is that an operation was initiated from Namada USS. The rule is simple: the larger the USS, the stronger the privacy mechanism.

To interact with applications on other chains, users do not sign simple transfers, but instead sign a series of instructions from Namada. This opens up a range of use cases, such as:

• Shielded staking on Cosmos: Users can unshield ATOM, transfer them to Cosmos Hub, and then stake them.

• Shielded swapping on Osmosis: SA allows users to unshield OSMO tokens, transfer them to Osmosis, swap them for ATOM, then move the newly acquired ATOM to Cosmos Hub and finally return them to Namada for reshielding. The whole process takes only a few seconds.

• Shielded data publishing on Celestia: Users can unshield TIA tokens, then transfer TIA and specific data to Celestia, where they can publish the data and process fees, all done under privacy protection.

• And so on.

While SA utilizes IBC not only for transfers, it is important to note that any interaction on IBC is transparent (it reveals the transaction graph). To maximize privacy between Cosmos and IBC, it is best to always keep assets shielded in USS unless needed for a specific operation and avoid using easily correlated amounts on IBC.

SA is key to modular privacy as it allows users to continue interacting privately with the tokens, applications, and chains they are currently using without requiring any changes to the chain or application.

Summary

Finally, Namada’s modular privacy is not limited by Cosmos and the cross-chain ecosystem. The architecture of this protocol is scalable and ready to seamlessly integrate into various blockchain domains.

The implementation of Namada’s trustless bidirectional Ethereum cross-chain bridge serves as concrete evidence of its adaptability, facilitating the expansion of Namada’s modular privacy to tokens and dApps beyond its underlying ecosystem.

As blockchain technology matures, the demand for robust, scalable, and private interactions is becoming increasingly urgent. Namada not only adapts to this future, but is also helping shape it.

We will continue to update Blocking; if you have any questions or suggestions, please contact us!