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In the summer of 2016, Ether Leeum’s most famous distributed autonomous organization was the deficiency of all Etherrium in the circulation at that time, stealing more than $ 40 million Etherrium (ETH). Dao hacking. This episode showed the definition of blockchain security, and the industry responded to a safer programming framework over improved smart contract audits, official verification and time. It was a pure and simple crisis -oriented innovation, but it played an important role in pushing blockchain technology to a long way.
Today the industry is another important inflection point. But this time, the crisis is not rooted in panic due to a singular and isolated event, but rather a vulnerability that is too insidious by crossing the encryption ecosystem. inflict.
We are talking about trading personal information.
Daily attack
Billions of dollars are flowing through public members every day in cryptocurrency transactions. In this transparent swimming pool, sophisticated bots scan a profitable opportunity to extract value through full -scale execution and sandwich attacks.
This is not rare. These attacks occur thousands of times every day, and sophisticated actors steal billions of dollars from ordinary users through automated exploitation. This is a stolen stolen that is organized by a simple, simple, and powerful player, systematically extracting value from normal people. Known as malicious MEV (maximum extraction value), this extraction has grown from billions of dollars in theoretical issues that undermine the fundamental fairness of the blockchain system.
The way we arrive at that point explains the evolving challenge that the industry should have difficulty. Bitcoin’s proof of work solved the fundamental problem of achieving consensus on an unreliable network. Ether Lee’s smart contract enabled programmable transactions, but introduced a new attack vector. Steak proofs have questioned the centralization of validation, while improving energy efficiency.
Each progress has brought solutions over new challenges and time. But trading privacy indicates all different types of challenges.
Betrayal
Unlike previous security issues that can be solved through protocol patches or more powerful coding practices, personal information protection issues come from basic design selection: unique transparency of public blockchain. This transparency is often predicted as a function that ensures responsibility, and eventually became a fundamental vulnerability.
If all participants are seen by all participants withholding, people with the fastest bot and the strongest connections can use this asymmetry as an advantage. It seems as if you can see someone else’s orders on the stock exchange before the privilege merchant is executed.
Early perceptions of this problem have two clear but heterogeneous paths. We have prioritized personal interests by preventing or exploiting theft through systematic changes. The main player not only facilitated the latter to facilitate the practice, but also established an accelerated sophisticated infrastructure to legally legalize it in the process.
This design defect not only weakens market efficiency, but also betrays the core promise of the blockchain to create a fair and accessible financial system for all participants.
The industry’s response is inadequate and inappropriate inappropriate and inappropriate in the Protocol in the Protocol in a wrong attempt to protect personal information that weakens the basic principles of blockchain on the decentralization of blockchains and the lack of permission.
Running a blockchain on the centralized server solves the expansion, but the centralized solution, which creates a personal transaction channel, is privatized rather than solving the problem. They switch trust from the protocol to the intermediary.
Flat the stadium
The actual solution is in advanced encryption, especially in the critical value encryption system. Unlike traditional encryption, in which a single key has a complete power, threshold encryption distributes this responsibility to several independent parties.
By encrypting the transaction in Mempool through the critical encryption, a single participant can create a system that cannot unilaterally access the transaction details before running, and malicious MEV extracting malicious MEVs so that all users receive equal treatment regardless of technical sophistication. You can eliminate the advantages of the information that enables it. Or financial resources.
It may sound complicated, but the machine is actually simplicity. When a user submits a transaction, the key holder of the network is encrypted with a publicly created public key. This encrypted transaction, sitting in the member pool, is immune to tactics because the contents are hidden. Only after the transaction location in the block is finished, the key holder can reveal the stock of the password detox key to handle the transaction.
Think of it as a digital safe that many independent key owners must cooperate before the transaction details are released. As with the agreement that the steak proof is modified while maintaining security, the encrypted Mempi conversion represents the following major technical milestones of the blockchain. Both switching must preserve the essential characteristics of making blockchain technology valuable while rethinking basic assumptions.
Trust recovery
But this is just the beginning. The industry is already searching for advanced solutions. The threshold value is completely homogeneous encryption (threshold FHE) and uncertainty dwelling (IO) to potentially change the entire paradigm of the blockchain calculation by enabling direct calculations to the encrypted data. It is an idea that processes sensitive data without detoxifying sensitive data, and can have a significant impact on the protection of personal information.
Each development represents a smaller component of a much larger path toward the future, which is considered the basic characteristics of the blockchain system, not considered an add -on function.
But in this context, let’s definitely understand what privacy means. Privacy is not hidden or blurry. It is to share information to share, when sharing, and the power to share with anyone. Privacy is about the protection of thieves and bad actors who use transparency for their own interests.
Think for 1 minute. Do you want a company to show a trading strategy or business operation in real time? of course. We must have the right to restore the fundamental fairness that the payment of the spell (PFOF), the high frequency transactions in the Wall Street and the malicious MEV of Ether Leeum systematically destroyed.
As a community, we are now at an intersection. One path keeps the current state so that it can continue to stolen systematically. The other implements a proven encryption solution that can restore fairness and privacy in the blockchain system.
Mathematics and encryption exists today. The problem is whether we are willing to reflect the principles and values our industry and our technologies that we are starting to use.
