Anon Transactions for Hive - Some Longer explanation why this is big

Since I don't find my older posts and the discussions around them I make easily peasy some now posts that most likely miss a lot of core ideas around the topic.

Anyway, let's start.

First why anon transactions/funds are good?

First Privacy. In a world of fully transparent users and people. Privacy becomes more and more valuable. Special in crypto. If wallets get connected with names for example in ETH, it will end up in a huge security risk for the owners.

Also, privacy is a human right. Nobody needs to know. Decades ago, that was called bank secret, a special privilege that becomes bullshit with time to protect customers.

Back to the Security risk, did we really think social media will work with clear names and huge wallets? Lol hell no. The security would be worse than a bank account. Special in the time of social media and real-time tracking.

So shielded funds and transactions are especially needed for Hive, for user experience!

Besides this, all real crypto people would love it! A fully decentralized Network with the first Anon stablecoin.

I don't want to say too much, but this alone is a billion $ idea. Multibillion. Think yourself about it.

Another thing could be anon transaction ( besides token transfer) of custom Jsons. So NFTs could be bought and sold anon. Anon POB front ends, Anon Second layer tokens.

A true step into the direction of web3.

What about exchanges?

They will most likely hate it and delist hive at some point. But this would be not bad if the infrastructure of Dex is built at the same time. Also, I could imagine with this in place, a lot of anon lovers would start building on Hive.

Price feed would end up most likely being bullshit, So HBD would need some rework if it happens.

In combination with a V2 internal market ( pool with communities-owned base assets from DAO)

Something like this:

https://peakd.com/leofinance/@urun/hive-defi-pool-internal-market-v2--urun-post-about-this-again

it could add enough market depth to become a real thing + become ultra-sustainable.

I'm sure I forget at this point something that was discussed in the past already about using interest rates very smart. If I remember or find it I will edit it. it was something about using it sustainably for market depth and don't reward holding. Reward adding liquidity in a V2 internal market.

In theory 1 real Big internal pool and 4+ big external stable coin pools could be enough for hive to stay independent. Sure more pools would be better, like additional thrill pools like Hive/xyz token.

The most important would be multichain and interchain and constant expansion. With an internal 20% stablecoin defi pool, it could allow on the top buildings to add some rates rewards for the external pool.

Example: Placeholder token chain x that represents LP shares in V2 internal pool, it would be ultra-dynamic, but would allow to expand and use the deep liquidity from the on-chain pool.

How to build anon transactions?

There could be many different things be used. Like the original whitepaper idea around confidential transactions or something like zcash shielded protocol (zk-SNARKs privacy protocol).

In cryptocurrency, zk-SNARKs are a way for transactions to be private and fully encrypted on the blockchain while still being validated using the network's consensus rules. zk-SNARKs can show that the sender has the amount of funds they want to transfer without making that information public

Here is something from Vitalik about it ( very technical):

https://vitalik.ca/general/2022/06/15/using_snarks.html

The tech is out, so it would be nothing that would to be reinvented. @smooth knows about this 100x more than me. But as far i know it would be doable.

Since i need to bring it up from time to time, here it is again.

Conclusion

Besides all this scaling and onboarding and all that other issues, this would be a stand-alone thing. Something nobody else has the balls to do.

Something real WEB3 could be built on. The reasons are obvious why this is needed to move forward.

Social and finance is the biggest shit ever and can replace banks, but for this privacy is needed.

And besides all web3 and social shit, it adds a real finance use case to HBD. Something a real demand is out. Not some ponzi thing. Something real people really want.

Think about.