R3 offshoot Obscuro introduces an Ethereum blockchain privacy solution

Obscuro announced today the introduction of its DeFi privacy technology on Ethereum. Obscuro, which is aimed at both retail and corporate users, aims to offer a variety of applications like as secret transactions, sealed auctions, gaming, and private NFTs.

The project began as part of the enterprise blockchain firm R3, which also has a confidential computing solution, Conclave, which inspired Obscuro. The project was spun out by R3, and is managed by James Carlyle, R3’s former Chief Information Officer.

The new permissionless protocol is a Layer 2 Ethereum network that first focused on facilitating private transactions. A significant concern with public blockchains is that queued transactions are visible to everyone, allowing profitable possibilities to be front-run by miners or validators, referred to as miner extractable value (MEV).

While details can be encrypted, if they remain permanently private, the protocol could be utilized for illicit activity. To deter this, seclusion is maintained for a limited time, but details will eventually become public.

Technical benefits

To prevent snooping, the layer 2 blockchain network employs Trusted Execution Environments (TEEs), which are customized processors that separate confidential transactions from the rest of the computer’s operating system. Intel’s SGX processor is an example of a TEE. As with most blockchains, node operators earn incentives through the usage of a native token OBX, which will be utilized for staking once the network and token are operational. The network’s alpha version is planned later this year.