A zero-knowledge-oriented compliant privacy protocol, Elusiv, has secured $3.5 million in its seed funding round. LongHash and Staking Facilities Ventures led this round. The company stated in its press release that individual freedom relies on financial privacy, but privacy-maintaining technology requires practical compliance.
“ZK and new decentralized technologies allow us to overcome the notion that privacy and compliance are exclusive and instead enable us to form a new kind of symbiosis between privacy and compliance.”Yannik Schrade – Co-founder Elusiv
Elusiv is gearing up to become the “backbone of the blockchain financial ecosystem.” The protocol aims to provide users and merchants with privacy while maintaining safety via low-trade-off compliance solutions. Moreover, Elusiv will make standard transactions private while allowing users to choose the transactions to make public.
For your information, the Elusiv protocol boasts full composability, so it can be directly integrated into protocols and wallets and stay functioning even if just one party is using it to maintain privacy. This is definitely a competitive advantage because the existing solutions demand that both parties use the same service.
The proceeds will be used to create Elusiv’s own development team and manage security audits. Additionally, it will bring its solution to different blockchains. Some investors include NGC Ventures, Jump Crypto, Anagram, Big Brain Holdings, Cogitent Ventures, Equilibrium, Token Adventures, Marin Ventures, Monke Ventures, Moonrock Capital, SolanaFM, etc. Also included are several angels e.g., the founders of UXD Protocol, Zeta, Solana, Notify, and Solflare.
The General Partner and Chief Operations Officer at LongHash Ventures, Wei Shi Khai stated that the company is excited by the strong position taken by Elusiv to address this space via their user-friendly and scalable integrations without compromising upon the practicality of compliance.
“Moving forward, we see privacy as a key modular layer in our multi-chain infrastructure thesis, especially as more social and identity use cases mature.”Wei Shi Khai – LongHash Ventures
Conversely, Staking Facilities Ventures’ Venture Partner Louis Bauer stated that Elusiv had laid the foundation for sensitive transactions to be carried out on-chain. Ensuring privacy with compliance can widen blockchain’s options.
Some key systems introduced by Elusiv for compliance include Zero-Knowledge proofs and advanced cryptography. Elusiv allows users to provide insights into their private assets and transactions to third parties by sharing individual transaction viewing keys or adopting the TTP (trusted third parties) to view every transaction. Users can also prove to third parties that their transactions weren’t sent, such as by a known threat actor, with just a button or click.
The best aspect is that Elusiv’s advanced compliance system utilizes a decentralized network of trusted execution environments so bad actors don’t lose ownership of their funds but cannot gain privacy. The system allows disclosing retroactively made truncations of malicious actors to make Elusiv an unfavorable option for them and provide security to other users.