Incognito, a blockchain-based platform that specializes in building privacy layers is reportedly planning to debut anonymous DeFi (Decentralized Finance) transactions, beginning with the mainnet of Kyber Network.
Per the report, the privacy company already enabled anonymity for Ether (ETH) by making a shielded version of the crypto, with pETH as the ticker. Every transaction done with this copy of Ether is anonymous as they are conducted on Incognito.
Anonymous DeFi transactions start with Kyber
The anonymous DeFi transactions on Kyber will be enabled in May. According to the researcher at Incognito, Andrey Bugaevski, the company will launch more support of other DeFi platforms after Kyber. Some of the platforms include Compound, 0x, as well as Uniswap.
As reported, Incognito will adopt the same method used on the Ethereum crypto. In addition to having a shielded copy, the value of the pETH coins is equal to the normal ETH coin. In order to withdraw normal ETH, the privacy version of the crypto will be unshielded.
To enable this conversion, an exact amount of the shielded coins are usually burned on the Incognito platform, which will unlock an equal amount of the normal cryptocurrency. In this case, only the withdrawals and deposits from the smart contract on Incognito are visible for public view.
Same method as pETH
All the DeFi transactions will be anonymized in the process. However, the privacy company said that the DeFi platforms would feature more anonymity buffer, which will serve as a medium for them. Once enabled, the privacy version of the platforms are, namely, pKyber, pUniswap, etc.
Precisely, the anonymous DeFi transactions feature for Kyber is scheduled to launch on the 7th of May, followed by 0x, which will be enabled on the 17th. According to the report, the privacy support for Compound as well as Uniswap will be rolled in a month after.
According to the Kyber CEO, they facilitated $70 million worth of volume in 2018 and increased it to $387 million in 2019 due to the explosive growth of DeFi space. He had once predicted to see at least over $500 million value of transactions in 2020. Whether all of these will be anonymous DeFi transactions, time will tell.