How can zk-SNARKs be used to improve Augur privacy?

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How can Baby ZoE (once available on Ethereum) be utilized to improve the privacy of Augur market creators, liquidity providers and reporters?

Jun Li

Posted 2017-08-08T05:56:45.567

Reputation: 883

Answers

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Some applications of zk-SNARKs / ZoE will require further modification to implement, but here is an outline of some techniques we can reasonably expect to be introduced:

Easy

  • Anonymising individual bets placed on prediction markets, so that they cannot be connected to each other or to other blockchain activities of the participant (assumes the use of either ETH or common tokens with many participants, since anonymity is limited to being within the set of participants who make transfers of that token with zk-SNARKs)
  • Anonymising market creation, with the same scope and limitations as above
  • Anonymising liquidity provision, with the same scope and limitations as above
  • Concealing the relationship between a REP holder's reporting activities and their other blockchain activities will not be difficult providing that a sufficient amount of REP participates in the scheme. This can be accomplished through normal zk-SNARK token transfers.

Harder

  • Anonymising reporting by REP holders. This is certainly possible but may require modification to some of the Augur contracts to permit.
  • Concealing operations within the actual markets themselves. This is a significantly larger challenge and may require extensive re-architecting. In addition to architecture there is the challenge of providing sufficiently large anonymity sets for the zero knowledge proofs to apply to.

eMansipater

Posted 2017-08-08T05:56:45.567

Reputation: 314

0

Since Ethereum's accounts are pseudonymous all you really have to hide is the transfer of value. So let's say you have 20 REP. If there's some contract that allows zk-snarks protected transfers of erc20 tokens then you could simply send these 20 REP to a new account and participate on augur with that new account. Once you want to pay yourself out you could use the erc20 zk-snarks transfer again.

tobi

Posted 2017-08-08T05:56:45.567

Reputation: 389