Good Morning! π
Delivering interesting content every single week on Web3, Security, Crypto, NFTs, Privacy & AI.
It's FREE, Takes less than 5-minutes to read, and you are guaranteed to learn something.
Subscribe to get valuable News, Useful Resources and Insights every week to your Inbox!
Did you know that there already exists a chain-native private DeFi system on Ethereum, Binance Smart Chain (BSC), and Polygon? The RAILGUN project has developed this private DeFi system, which is user-friendly and operates independently of Layer 2 solutions or bridges, ensuring no compromises on security.
RAILGUN serves as a privacy middleware available on Ethereum, Polygon, Arbitrum, and BNB Chain, allowing direct integration with applications and wallets. The primary interface for RAILGUN is Railway, an independent wallet enabling private transactions and anonymous swaps through 0x, a decentralized exchange (DEX) aggregator.
Collect this post for FREE on Zora Network (only 100 mints available)
Uniqueness of RAILGUN
Unlike many competitors in the privacy space, RAILGUN operates on base layers like Ethereum and seamlessly integrates with external smart contracts, setting it apart. The project began gaining traction in July 2021, offering users native and hassle-free privacy solutions without relying on external privacy chains or basic mixers.
Project History
RAILGUN emerged in July 2021 with open-source contributions and subsequently introduced the RAIL token via airdrop, establishing the RAILGUN DAO for governance. Notably, it launched the RAILGUN SDK on Ethereum and continued expanding to BNB Chain and Polygon.
How RAILGUN Functions
Shielding Assets
Users engage the RAILGUN Privacy System by "shielding" their assets. This non-custodial process involves sending assets (currently ERC-20 tokens or NFTs) to a public RAILGUN 0x address, which can then be shielded to a private 0zk address via RAILGUN's privacy pool, ensuring token anonymity.
Transaction Mechanics
RAILGUN transactions occur between 0zk addresses or within DeFi, involving encrypted data transmitted to Relayers via the private Waku network, ultimately interacting with the blockchain. Transactions use a UTXO model, employing ZK proofs for anonymity, while revealing only essential details like Relayer and destination addresses.
For RAILGUN-to-RAILGUN (0zk) transactions, the sender, recipient, token type, and transacted amount remain totally private. The publicly visible details are the Relayer address and the destination address, i.e., the respective RAILGUN smart contract (for the given chain).
For transactions involving other smart contracts (e.g., a DEX), the tokens/amount exchanged is also visible. Finally, users can unshield to any 0x address as they can with the typical coin mixer. In doing so, they can anonymously send tokens β linking the transaction to the RAILGUN smart contract address rather than their own.
Integration and Additional Features
Developers use the RAILGUN SDK, employing Adapt Modules to bridge external contracts and the RAILGUN Privacy System. Noteworthy features include gasless transactions, multi-sends, and voluntary disclosure options for creating verifiable transaction histories.
Governance and Tokens
RAILGUN operates with three governance tokens corresponding to specific deployments and DAOs on Ethereum, Polygon, and BNB Chain. Active Governors, staking RAIL tokens, influence governance and earn a share of DAO revenue.
How to Use RAILGUN's Private DeFi System
1. Create a Wallet
Visit RAILGUN's partner project, Railway's app, at https://app.railway.xyz to create a wallet.
2. Two Addresses in Your Wallet
Your wallet will consist of two addresses:
0x Address (Public)
0zk Address (Private)
Funds and activity in the 0zk address are hidden from public view such as on etherscan. We call funds in your 0zk address your private balance.
3. Understanding Private Balance
Funds and activities in the 0zk address remain hidden from public view, such as on Etherscan. These funds are referred to as your private balance.
4. Transferring Funds
Transfer funds into your RAILGUN 0x address from any source (e.g., MetaMask or exchange wallet) across supported chains. Simply copy the 0x address generated in the first step and send funds to it as you would to any other address.
5. Import Existing EVM Wallet
You can import an existing EVM wallet by entering your seed phrase. Note: MetaMask will input only the first address if multiple addresses are linked to it.
6. Privately Moving Funds
To move funds into your private balance, initiate the process by pressing the 'Shield' button. Choose the token and amount to shield. Your funds never leave the chosen chain.
Input your password and click 'Shield'. The system generates a zk-SNARK proof, ensuring private ownership of your shielded assets.
7. Additional Features
For enthusiasts, any ERC20 token can be shielded by clicking the '+' icon above your balance and selecting 'Custom Token'.
8. Private Transactions
Once funds are in your private balance, you can privately send them to other 0zk addresses or unshield them back to any 0x public address. All fees are paid in stables/crypto of your choice, eliminating the need for ETH or $RAIL.
RAILGUN SDK: Extending the Capabilities
With the RAILGUN SDK, you gain the ability to interact with any smart contract using your private balance. This means seamless swapping, trading, and earning on your favorite chain's dApps, ensuring complete privacy without compromising user experience or liquidity.
Advantages of RAILGUN Over Other Privacy Projects
Benefits for Users:
Ease of Use: Simple and flexible asset support with NFT support coming soon.
Maintained Liquidity: Users retain the same liquidity as before, without compromising on privacy or fracturing Total Value Locked (TVL) or user base.
RAILGUN for Developers
Simplified Integration: Integration into existing wallets or dApps is streamlined, requiring minimal adjustments to the codebase.
Enhanced Security: RAILGUN's privacy system ensures security without the need for porting dApps to Layer 2 or introducing new security assumptions.
Seamless Accessibility and Security
Railway DEX, the first cross-contract integration of the RAILGUN SDK, enables token swapping within your private balance with low slippage, utilizing efficient order routing via the 0xProject API.
The availability of Railway as a standalone desktop app, iOS, and Android ensures access to private DeFi from anywhere.
Interested in learning more or joining the world of private DeFi? Visit our Telegram group here!
Conclusion
RAILGUN's success hinges on code evaluation, network effects, and reducing adoption barriers due to fees. Integrating with more platforms and mitigating reliance on Railway wallet could de-risk the project and accelerate adoption, crucial as privacy becomes increasingly vital in the crypto landscape. While facing complexities and challenges, RAILGUN presents a crucial solution for ensuring user and developer privacy in the evolving crypto space, poised for growth with its innovative tools and technology.
The imminent public release of the RAILGUN SDK allows developers to integrate RAILGUN, providing a secure, private DeFi experience without compromising on liquidity or security. Join the world of private DeFi and experience seamless, secure transactions today!
Popular Posts:
Imagine entering a high-tech world where your financial transactions are as private as confidential business discussions held in a secure boardroom.
Today's story is about RAILGUN, an innovative privacy middleware that addresses aβ¦
110
Vitalik mentioned this protocol in a talk two weeks ago.
If you care about your on-chain privacy (you absolutely should) then this thread is for you
Once people start to realise how engrained it is in every aspect of our lives
How essential it is
Then we will see a privacy narrative you will wish you got involved with earlier
Today Linn is looking atβ¦
One privacy project has seen its TVL rise 300% this year.
Here's why @RAILGUN_Project is a game-changer.
If you're enjoying today's newsletter, why not share it with your friends? They might find it just as informative and entertaining as you do.
Sharing is caring, and by spreading the word about this newsletter, you're helping to support ME and ensure that more great content gets produced in the future. Plus, you'll get to have even more conversations with your friends about the interesting topics covered in each edition.
There are three ways to show me that you enjoyed reading this article:
Share this post with your friends
Subscribe to my newsletter
Collect this post for FREE on Zora Network (only 100 mints available)
I hope this was helpful!
Thank you for reading!
Letβs bust some more in next article. π
My Previous Articles:
...and more!
