#What are the key advancements in Paradex’s new privacy feature?
Paradex recently introduced Privacy Perps, a groundbreaking feature tailored to enhance user privacy regarding accounts and positions through advanced encryption and secure authenticated RPCs. This initiative signifies a pivotal movement towards integrating centralized exchange-like privacy protocols within a decentralized environment.
This new privacy system ensures that trade data including orders, positions, and balances are only accessible to account holders and Paradex itself. Privacy safeguards are in place at every operational layer, spanning from Paradex Cloud through its L2 chain all the way to the Ethereum mainnet.
How does the L2 and L1 privacy mechanism work?
On the L2 chain, private trading data access operates through authenticated RPC calls, effectively preventing outside observers from piecing together account statuses via indexers. In contrast, on the L1 layer, any state updates posted to Ethereum are encrypted and verified through zk-SNARKs, significantly restricting data exposure to unauthorized viewers.
Who manages data decryption and what is the role of the Privacy Council?
A dedicated Privacy Council, comprising members from Paradex, the Paradex Foundation, and Karnot, oversees the decryption of data when necessary. This structure is designed to enhance user safety by providing a secure state recovery option without compromising individual privacy. This initiative not only preserves the confidentiality of users but also presents a contingency plan should Paradex face operational challenges.
Paradex heralds this launch as a defining moment for self-custodial trading platforms, successfully merging user privacy with decentralized recovery options, establishing a higher standard for future innovations in the sector.
With these advancements, Paradex positions itself as a leader in privacy-focused trading solutions, offering peace of mind to users in a landscape where data security is paramount.