The Shared Privacy Protocol, a multi-chain privacy layer for confidential on-chain transactions, has been introduced by the Hinkal Protocol. This protocol enables cross-chain privacy through anonymous staking.
Hinkal stated that the privacy protocol provides numerous advantages in an announcement made at EthCC 7.
These include the capacity for stakers to deploy native and staked assets to the protocol, thereby generating additional yield while preserving the ability to trade yield tokens on other dApps.
According to the protocol, the expanded Shielded pool can benefit traders, as it further complicates their trading strategies and optimizes capital deployment across multiple channels.
Developers of decentralized exchanges and dApps will now be able to seamlessly integrate Hinkal’s Shared Privacy Protocol directly into their platforms, thereby providing their users with new privacy capabilities.
“The full adoption of crypto as an asset class across the institutional financial sector is contingent upon the guarantee of complete privacy on-chain,” stated Georgi Koreli, co-founder and CEO of Hinkal.
“The Hinkal Protocol has already been widely adopted throughout our institutional network, and the Shared Privacy Protocol’s launch is a critical milestone in the pursuit of breaking down privacy barriers in crypto and unleashing the power of the community,” Koreli continues.
Institutional Investors Want Privacy Offered in DeFi
However, the team explains that to achieve complete privacy in DeFi trading, a substantial pool of “Shielded TVL” on each blockchain must conceal transactions sufficiently.
This endeavor is daunting because of the industry’s extensive landscape of over 200 Layer-1 and Layer-2 blockchains.
The team behind Hinkal stated that liquidity fragmentation had been a substantial impediment to institutional adoption due to the absence of appropriate incentives and the fact that privacy in DeFi was not scalable until recently.
To operate efficiently in DeFi markets, we require a compliant solution that allows for discrete liquidations without disclosing transaction data.
The Shared Privacy Protocol from Hinkal is the solution we have been seeking, according to Evgeny Gokhberg, the founder of Re7 Capital and an investor in Hinkal.
