A new project to bring Monero-like privacy to ETH DeFis

Fibo Quantum

  • A project called Incognito came up with the idea to provide Ethereum DeFis with much-needed anonymity.
  • It created an interoperable privacy sidechain that will make private versions of all the popular DeFis.
  • Its privacy features look a lot like Monero’s, but the project added a lot more.

A project known as Incognito is a new privacy project with a strong focus on interoperability. However, it also believes in anonymity in the crypto industry, which is why it developed an interesting solution. With its technology, it can anonymize the tokens of any other blockchain. To achieve this, it is creating private versions of Ethereum’s leading DeFis.

The move to make DeFis private will come through a number of initiatives. The first one, known as the pKyber initiative, was only announced a few days ago, on April 24th. The testing started on the same day, while the theory regarding the initiative came all the way back in October 2019. As for Incognito MainNet, its launch is already scheduled to take place on May 7th.

How will it all work?

The first thing to note is that Incognito comes as a standalone blockchain that focuses on privacy in crypto transactions. It uses technology similar to that of Monero, on which it is based. That includes stealth addresses, confidential transactions, ring signatures, and alike.

However, Incognito doesn’t stop there. It also focuses strongly on interoperability, due to the desire to include other blockchains. It wants to create a universal private sidechain from which all public blockchains can benefit.

It also won’t feature full smart contracts, but it can allow the creation of new tokens despite that. Of course, with certain limitations, but they will be good enough for creating trustless bridges to other platforms.

In essence, Incognito will act more as a trustless proxy than anything else, allowing private trading instructions, swaps, and alike.

Incognito token and its distribution

The newly-announced DeFi integration comes as its latest update. The project is young, but already surprisingly complete, considering that it launched its mainnet on October 31st last year. It already provides a functional way to protect multiple coins, including BTC, BAT, USDT, DAI, ZIL, and more.

The majority of the features can be easily accessed via a mobile wallet, available for Android and iOS alike. It also features a proprietary token, PRV, used for settling transaction fees.

The coin will also serve as a block reward for transaction validators, as the project uses the PoS model. The project did not hold an ICO, nor did it airdrop its tokens. It pre-mined 5 million of them, with 95 million still left to be later distributed through rewards. Of course, this is an issue, as the team would have almost 100% of the coin’s supply. The project solved the problem by introducing a borrowing system, where stakers can borrow $700 worth of PRV (1750 PRV) as their stake, and obtain a part of the rewards.