Decentralized finance (DeFi), with all its promises of transparency and scalability, is becoming more and more popular day by day. We now have a plethora of DEXs and dApps in development with the promise of changing the future course of our financial systems. However, as the DeFi user base continues to grow, we are facing a serious privacy issue. Financial asset transaction information is quite transparent on most blockchain networks and can easily be traced back to the original user.
To counter this problem, we need a privacy protocol that can effectively protect user information on blockchain networks. This is where Suterusu comes in.
What is Suterusu?
Suterusu is a next-generation privacy protocol that protects users’ transaction information by converting tokens issued over various blockchain networks to their anonymized versions. Using a new technology called zk-ConSNARK, it protects both the identity of the user and the financial value of the transferred asset. What sets Suterusu apart from other privacy protocols is that it is highly scalable and supports smart contracts.
What problems does Suterusu solve?
All DeFi platforms today facilitate peer-to-peer digital currency transactions across the world. The problem is, all of these transactions are stored in a ledger and can be viewed by anyone. Most blockchain networks claim that the user’s identity remains anonymous. But they are only pseudonyms. With a simple blockchain address, all transactions made by a user can be traced easily.
To solve this privacy problem, several privacy protocols like zCash have emerged over the years. These protocols use an evidence generation and verification method called zk-SNARK (Zero-Knowledge Succinct Non-Interactive Argument of Knowledge) to protect users. zk-SNARK is used to offer proof of information about a certain thing without directly revealing the real information. This requires a setup where a trusted entity generates secret keys to keep transaction data private. This method is not efficient and contradicts the very idea of decentralization. Also, these protocols are not scalable and do not support smart contracts.
This is exactly what Suterusu aims to solve. It aims to bring levels of privacy unmatched in the DeFi world without the need for a reliable or centralized configuration.
Within three weeks of the official launch of Suter Shield BSC, the total trading volume has exceeded 205 million USD, the number of trades has exceeded 9,000 and the annualized TRY (Transaction return per year) has exceeded 2000%. With over 1,200 transactions on Ethereum, the volume of all transactions, including Suter Shield Ethereum, has exceeded $ 210 million. The annualized TRY is now over 1000%.
How Suterusu Works
There are various elements that enable truly private crypto transactions within the Suterusu ecosystem. Here is a brief overview:
The Suterusu protocol uses its own modified version of zk-SNARK technology called zk-ConSNARK which eliminates the need for reliable configuration. It acts as a second layer that allows users to perform small crypto transactions of almost constant size with efficient generation and verification of evidence.
Suter Shield is the primary privacy preservative of the Suter Protocol. It was first deployed on the Ethereum blockchain, and it accepts deposits from any Ethereum address and allows the depositor to withdraw funds from an entirely different address. It also makes sure that the two addresses are not linked. When the depositor and withdrawal addresses cannot be linked to each other, there is no way to trace the entire transaction. In this way, Suter can make any blockchain transaction truly anonymous. In addition, it also adopts a homomorphic public key encryption scheme to ensure the confidentiality of the transaction amount. Due to the universal nature of the Suterusu protocol, Suter Shield can be deployed on any blockchain, including Binance Smart Chain, which supports smart contracts.
Suter Virtual Machine (SuterVM)
SuterVM is basically a tool that facilitates the deployment of the Suterusu protocol on blockchain networks such as Binance Smart Chain, Near, Solana, Theta, and many other blockchains that support smart contracts.
Suter smart contracts
- Fund contract: The user must first create a Suter account. Then the ERC-20 tokens that need to be transferred are deposited into the account. The Fund smart contract converts these tokens to their anonymized versions (like s-ETH or s-WBTC) to protect them from view. The original tokens are stored in the Fund contract itself.
- Transfer contract: Now, once the anonymized tokens are created, the transfer contract is initiated. It uses zk-ConSNARK technology to hide the user’s identity and encrypt the total value of the transaction. The secret key of the sender’s Suter account and the public keys of the sender and recipient are used to create zero-knowledge evidence. This proof serves as an input to the Transfer Contract. Once the contract is executed, the assets are transferred from the sending account to the receiving account.
- Engraving contract: The burn contract frees the original tokens from the fund contract by burning the anonymized versions of the tokens.
SUTER is the main utility and governance token of the platform. Token holders can wager their tokens to participate in on-chain governance of the network. The token is also used to pay gas charges for smart contracts that allow privacy. A portion of the gas royalties collected is paid as a reward to those who participate in the governance of the platform. On top of that, SUTER is also an ERC-20 token, which means it can be used for payments over networks.
SUTER’s total supply is capped at 10 billion, of which 3.7 billion tokens are currently in circulation. The token adopts a deflationary model in which the annual supply is halved every two years. SUTER has the lowest inflation rate among all traditional privacy coins.
Since its launch, Suterusu has been well received by the industry. It has already been integrated into the Ethereum blockchain, Binance Smart Chain and Huobi ECO Chain. The network has a market capitalization of $ 47 million as of March 2021. As DeFi continues to grow, we might see this protocol built into almost any blockchain network to protect the privacy of their users. Suterusu has the potential to become one of the major players in the DeFi ecosystem.