Current technological innovations can be both beneficial and detrimental to the privacy of data handled on the blockchain network. Whenever we analyze and write about cryptocurrencies, we must make clear the importance of doing our due diligence first. Lately in the cryptocurrency world there has been a lot of talk about smart contract exploits, flash loans, rug pulls and bank runs, like which happened at Iron Finance. However, the DeFi world is always innovating with projects that seek to minimize risk when it comes to trusting the ecosystem.
There are several reliable mechanisms such as Zk-SNARKS that are a type of cryptographic test designed to guarantee the maximum possible privacy using the protocols or zero-knowledge tests, an interesting technique that allows us to validate and verify information without having to give access. This prevents the leakage of confidential information that hackers could exploit.
Enter Onion Mixer
Onion Mixer uses this mechanism and is also the first decentralized cross-chain protocol to support anonymous, private transactions on heterogeneous multiple chains. Combines the techniques of CoinJoin (underlying CoinShuffle) and proof of zero knowledge (zkSNARK) to break the chain link between deposit addresses and withdrawal addresses, in order to protect transaction privacy for all DeFi components.
The name, Onion Mixer echoes TOR – The Onion Router, which is the creator of anonymous online communication; and Mixer means “mixer”, which demonstrates how Onion Mixer works, that is, combining transactions in the protocol, thus breaking the link between the input and output addresses to secure private transactions.
Onion Mixer wants to be the universal privacy protector for all products containing DeFi components with lower fees, more efficient transactions and more decentralized governance. It is designed by a team that brings together programmers from Funderclub, Personal Capital, Xapo, Blockai, Microsoft, and other well-known blockchain companies. However, they remain anonymous.
Onion Mixer also has an incentive for holders of its native token, OMT, allowing liquidity mining. All OMT rewards earned by users through mining will automatically go to the stake pool (a penalty mechanism), or can be purchased from a third-party DEX and automatically saved, providing continuous bonuses for users. Users will be charged 10% transaction fees when they take their assets out of the share pool, of which 4% will be rewarded to other “loyal users” in the pool who continue to hold them, 4% will be injected into the pool. OMT transaction group. to achieve its own liquidity growth, and the remaining 2% will be burned directly, causing the deflation of the OMT tokenomics.
Onion has a clear roadmap:
Stage 1, They selected BSC as the starting platform to build the coin mixing pool for its advantages in user base, low transaction fees, fast transaction speed, and comprehensive ecology.
Stage 2, after accumulating sufficient transaction volume at BSC, they will support anonymous cross-chain transactions for assets from other large public chains, including but not limited to ETH, HECO, TRX, Polkadot, etc.
Stage 3, they will design a more accessible protocol to connect the DAPP ecology and perform immediate mixing after deposit.
Stage 4, they hope to function as the technical underlying for anonymous cross-chain transactions in the blockchain field and take the lead in the market.
In short, it is a fairly ambitious project that seeks to scale by permitting anonymous token transactions in both Ethereum and BSC and other large chains, this will make the transaction more private and secure, and will provide more possibilities for cryptocurrency users.