⚙️Technical Overview
Last updated
Last updated
Privacy in blockchain is generally offered by protocols built around a virtual layer, a technology used by CEXs, in which input and output transactions, deposits and withdrawals, are sufficiently diluted to be rendered untraceable.
This is exactly the choice Whirl has made to guarantee the privacy of transactions carried out via its protocol, while adding a number of features to this model all aimed at optimizing confidentiality and UX.
Whirl's virtual layer, integrated with rhino.fi's API, operates as a private blockchain, functioning as an additional privacy layer on top of RhinoFi's smart contracts. This additional layer means that rhino.fi, as the API provider, cannot trace funds or access sender and receiver address information. Transactions, portfolios, and balances within our virtual layer remain completely non-public on the blockchain, meticulously tracked through e-wallets.
The transactions, portfolios and balances of virtual layer users are not publicly visible on the blockchain, but accurately tracked by the virtual layer using e-wallets.
The main problem new privacy protocols are oftentimes faced with is the lack of volume in their pools, thus hindering their efficiency.
By leveraging existing pools, the Whirl protocol makes it possible to interact with smart contracts that already have a very large input and output flow.
Whirl is thus not dependent on mass adoption of its protocol to guarantee transaction privacy. The use of predefined fixed amounts for deposits and withdrawals is encouraged on Whirl. These fixed amounts further enhance the privacy by diluting them among transactions of the same amount.
Deposits are designed to fund the Whirl e-wallets in complete privacy. To achieve this, the Whirl protocol uses a transactional deposit model.
When users wish to deposit funds into their Whirl wallet, they simply sign a transaction for an amount equal to the amount they wish to deposit. This transactional deposit model does away with the traditional deposit wallet provided to users, a common feature of CEXs and privacy protocols. In this way, users interact directly with the Whirl smart contract which then sends the funds to a relayer wallet, without ever linking their transactions or their various wallets to an individual intermediary wallet.