Ethereum

Some notes on the new confidential ERC20 standard:

- Decryption key is held by a single entity. So they can decrypt everything at any time
- looks like smart contracts won’t be able to verify the that a transfer was successful within the same tx. When a transfer is executed, the amount is encrypted. If the transfer was unsuccessful it will simply transfer 0 tokens (still encrypted). So the smart contract needs to request decryption and wait for the callback to verify that the amount is correct. 

To burn 

So if the central entity responsible for the decryption is down, the whole system will break down.
- can’t burn tokens to get the underlying asset back (only applies to wrapped tokens)
- can transfer tokens, but recipient can’t verify that the amount is correct.
That would make the token pretty much worthless

Some notes on the new confidential ERC20 standard:

- Decryption key is held by a single entity. So they can decrypt everything at any time
- looks like smart contracts won’t be able to verify the that a transfer was successful within the same tx. When a transfer is executed, the amount is encrypted. If the transfer was unsuccessful it will simply transfer 0 tokens (still encrypted). So the smart contract needs to request decryption and wait for the callback to verify that the amount is correct. 

To burn 

So if the central entity responsible for the decryption is down, the whole system will break down.
- can’t burn tokens to get the underlying asset back (only applies to wrapped tokens)
- can transfer tokens, but recipient can’t verify that the amount is correct.
That would make the token pretty much worthless 

https://www.circle.com/blog/confidential-erc-20-framework-for-compliant-on-chain-privacy

I mainly write code and read books. Sometimes I take pictures. I wish I’d write.

https://zora.co/ruhum

hmm, sounds like a lot of trust issues with this new ERC20 standard 😅 not sure how I feel about one entity holding all the keys. kinda defeats the purpose of decentralization, right? 🤔