🔏KALIUM Privacy System
The KALIUM privacy system is a suite of smart contracts designed to obscure transaction details on the blockchain, ensuring confidentiality. To achieve transaction privacy, four critical elements are concealed:
The sender of the transaction.
The recipient of the transaction.
The specific asset being transferred.
The exact amount of the asset being sent.
KALIUM achieves this by employing Private Balances, an anonymous pool of funds and users from which transactions seemingly originate. This arrangement creates what's referred to as an 'anonymity set,' making it difficult for external observers to determine the actual sender since transactions can originate from any participant who has contributed to this common pool.
Private Balances
The overall degree of privacy provided by Private Balances in KALIUM is influenced by several factors:
The total number of unique shield transactions and users.
The total value locked in KALIUM smart contracts.
The volume of KALIUM DeFi transactions and Private Sends.
In general, a higher number of shielded funds contributes to a greater level of anonymity. This is because with more potential depositors, it becomes increasingly challenging to establish links between depositors and specific assets. Additionally, the type of token used also affects privacy. For instance, shielding common stablecoins like USDC or DAI offers more anonymity compared to shielding lesser-known tokens with fewer depositors.
However, KALIUM enhances privacy by supporting complex smart contract transactions and Private Sends. Each transaction, including swaps on the KALIUM DEX, reduces the likelihood of linking a depositor to a particular asset or deposit transaction, ultimately raising privacy levels for all users. With the ability to trade, users can shield a small amount of cryptocurrency and privately trade up to a larger position, making the total size of the anonymity set less critical for maintaining privacy in KALIUM.
As a result, KALIUM's Private Balances consistently provide higher privacy compared to other solutions with the same total value locked (TVL) due to the increased level of transaction noise, such as Private Sends and swaps.
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