Public transaction history in blockchains represents one of their key features which, alongside immutability, aim to provide an alternative to CeFi. However, this transparency comes at a price: privacy. As a result, different solutions have been proposed, that preserve privacy while maintaining all the other benefits of blockchain technology, but there currently isn't a one-size-fits-all answer to this problem. For example, zero knowledge proofs convey the validity of a transaction batch without sharing any other details, but the underlying arithmetic circuits are both complex as well as computational intensive. Umbra proposes a system that relies completely on elliptic curve cryptography, employing multiple private-public key pairs to achieve stealth payments.

We were joined by Ben DiFrancesco, founder & CEO of ScopeLift, to talk about Umbra's privacy preserving stealth token transfer system and if the need for privacy on blockchains outweighs any implicit UX frictions.

Topics discussed in this episode:
- Ben’s background
- Umbra's mission
- How Umbra works
- Non-interactive key distribution
- Potential solutions (& trade-offs) for Umbra's computational intensity
- Generating private-public key pairs by the Umbra smart contract
- User experience (UX) for senders and receivers
- Fee structure for deterring griefing attacks
- How Umbra works for ERC20 tokens & NFTs
- Privacy preserving withdrawals from stealth addresses
- Privacy vs. UX friction
- Smart wallets & account abstraction
- Prioritising privacy

Links mentioned in this episode: 
- Ben DiFrancesco on Twitter: 
- Umbra on Twitter: 
- ScopeLift on Twitter:

This episode is hosted by Friederike Ernst. Show notes and listening options: https://epicenter.tv/496

Epicenter - Learn about Crypto, Blockchain, Ethereum, Bitcoin and Distributed Technologies

#496 Ben DiFrancesco: Umbra – Privacy Preserving Token Transfers

Epicenter is a podcast about the technologies, projects & people driving decentralization and the global blockchain revolution.

Epicenter is hosted by Brian Fabian Crain, Sebastien Couture and Meher Roy. Every week, we find the most interesting people in the industry for in-depth discussions about their projects, ideas and stories.

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