Why use Sacred?
Although traditional mixers aim to privatize your transactions and assets, deposits sit idle and miss out on yields because current privacy solutions require you to keep your funds in money mixer pools for as long as possible (the longer your asset stays in the mixer, the more private your assets will be).
Additionally, to “ensure that [your] on-chain behaviours are unlinkable between uses of these mixers - [you] should use the mixers after every transaction.” This is because the transactions on the new wallets can be used to build a digital model of you which can be tied to your old wallet, through blockchain analysis tools like Chainanalyis.
Sacred brings a novel privacy solution where it solves for assets sitting idle and the need to continually move assets through traditional mixers. By integrating DeFi with mixers, another layer of privacy is provided through Sacred Boxes. When you deposit your assets in a Sacred Box, Sacred interacts with a DeFi partner on your behalf. Since every transaction you make on Sacred goes through a mixer, your depositing and withdrawing addresses are further disassociated which allows for you to continue to maintain your privacy.
Sacred does this through a non-custodial mixer which allows you to earn yield privately by breaking the on-chain link between the depositor's and the withdrawer's addresses utilizing a cryptographic technology called ZK-SNARK (Zero-Knowledge Succinct, Non-Interactive Argument of Knowledge). By leveraging Sacred’s mixer, observers are unable to collect wallet addresses and watch assets moving on blockchain scanner tools like Etherscan.

Why do we need privacy?

With the advent of web 3.0 and DeFi, finance has become truly open and permissionless. However, with this new financial revolution comes the reality that all transactions are publicly available, due to the nature of blockchain technology. With little difficulty, any observer can determine your net worth, follow the new investment markets you’re tapping into, collect data for advertising, and analyze your behavioural patterns. Alongside all the benefits, being your own bank presents new risks as well.
Last modified 12d ago
Copy link