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  • What is Sacred?
    • Introduction to Sacred Finance
    • Why use Sacred?
    • Roadmap
  • How Sacred Works
    • Sacred Versions
    • How to use Sacred
    • Private Yield
    • Anonymity Set
    • Sacred Rules
  • Technical Details
    • How V1 Sacred Boxes work
    • Relayer
    • Sacred Ceremony
  • Tokenomics
    • Token Supply & Distribution
    • Incognito Mining
      • Incognito Credits
      • Incognito Accounts
      • Converting IC into SACRED
    • Sacred Buy Backs
    • Bonding Management
  • Sacred Terminology
    • Sacred Box
    • Sacred Claim
    • Privacy Indicator
    • Inspect Tool
  • Other Sacred Info
    • Sacred Privacy Policy
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  1. How Sacred Works

Anonymity Set

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Last updated 2 years ago

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How Sacred keeps the transactions private:

Sacred enables the user to deposit funds into a mixer with one address, and redeem it with a different address breaking the on-chain link and obscuring the record on the blockchain from observers. This is possible thanks to zero-knowledge proofs.

A detailed explanation of anonymity set:

For every deposit type (i.e., 1 WETH, 10 WETH, etc.) within Sacred, there is a Sacred Box that manages a set (collection) of all active user deposits of that denomination, from oldest to newest. In other words, an Anonymity Set is a group of entities with the same attributes, making them indistinguishable from each other in the context of an attacker. Tokens going into each respective Sacred Box contribute to and become part of the anonymity set. For withdrawals to be considered private, wait for at least 5-10 layers of deposits on top of the deposit to achieve maximal privacy.

As such, the anonymity set’s effectiveness depends on:

  • The total amount of deposits

  • The volume of transactions

A vital incentive mechanism that supports larger anonymity sets is Incognito Mining. This incentive increases the level of privacy in each Sacred Box as it incentivizes users to put their liquidity into Sacred. Remember, the more deposits there are, the more depth within Anonymity Set and the stronger the Privacy Indicator (level).

The community maintains Sacred’s Privacy and is rewarded for it both by earning yield from deposits and through !

Anonymity sets are integral to the overall privacy of Sacred’s ecosystem. Please check out the to maximize privacy when using Sacred!

Incognito Mining
Sacred Rules