Epicenter brings you in-depth conversations about the technical, economic and social implications of cryptocurrencies and blockchain technologies. Every week, we interview business leaders, engineers academics and entrepreneurs, and bring you a diverse spectrum of opinions and points of view. Epicenter is hosted by Sebastien Couture, Brian Fabian Crain, Friederike Ernst, Meher Roy and Felix Lutsch. Since 2014, our episodes have been downloaded over 8 million times.
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episode 496: Ben DiFrancesco: Umbra – Privacy Preserving Token Transfers
Public transaction history in blockchains represents one of their key features which, alongside immutability, aim to provide an alternative to CeFi. However, this transparency comes at a price: privacy. As a result, different solutions have been proposed, that preserve privacy while maintaining all the other benefits of blockchain technology, but there currently isn't a one-size-fits-all answer to this problem. For example, zero knowledge proofs convey the validity of a transaction batch without sharing any other details, but the underlying arithmetic circuits are both complex as well as computational intensive. Umbra proposes a system that relies completely on elliptic curve cryptography, employing multiple private-public key pairs to achieve stealth payments.
We were joined by Ben DiFrancesco, founder & CEO of ScopeLift, to talk about Umbra's privacy preserving stealth token transfer system and if the need for privacy on blockchains outweighs any implicit UX frictions.
Topics covered in this episode:
- Ben’s background
- Umbra's mission
- How Umbra works
- Non-interactive key distribution
- Potential solutions (& trade-offs) for Umbra's computational intensity
- Generating private-public key pairs by the Umbra smart contract
- User experience (UX) for senders and receivers
- Fee structure for deterring griefing attacks
- How Umbra works for ERC20 tokens & NFTs
- Privacy preserving withdrawals from stealth addresses
- Privacy vs. UX friction
- Smart wallets & account abstraction
- Prioritising privacy
Episode links:
- Ben DiFrancesco on Twitter
- Umbra on Twitter
- ScopeLift on Twitter
This episode is hosted by Friederike Ernst. Show notes and listening options: epicenter.tv/496