Always appreciate discussion which progress privacy initiatives in the ecosystem Thanks for the questions @officialabdulak > How can users verify encrypted swaps execute correctly without exposing private data? Users intents/orders are encrypted on the client end itself. Onchain it only shows those orders as ciphertext (indistinguishable from each other). We've a threshold network (would be economically backed) in place which guards the privacy of these ciphertexts. Additionally for the v1 version of our coprocessor (TEE's one) the ciphertext gets decrypted within AWS nitro (with AWS security) JUST FOR processing PS: the ciphertext is never stored within TEEs. For our v2 coprocessor we would replace this computation engine with FHE (given the modularity of our infra) where we wouldn't even have to decrypt the ciphertext for processing. Post processing, for every intent/txn/order which users makes we've a passive verification flow (which users/devs could consider as finality to verify that the execution has taken place correctly and in a non malicious env) To be precise, Every user intent/txn/orders post processing becomes a part of a batch tree, There batch trees get accumulated in a periodic manner and the final accumulated root gets posted onchain and now any user could verify a certain intent/txn/order data against those posted root (This mechanism is very similar to how Sequencer's post their state root on L1 to enable native bridging of tokens from L1 to L2) We've shared how the whole mechanism works here: > Does Encifher use its own encrypted liquidity pools or act purely as a privacy relay through @JupiterExchange ? Whenever a user wraps certain assets, That assets becomes a part of encrypted pool. Right now the current frontend encrypt[.]trade doesn't utilizes native order matching (order solving with encrypted tokens) and processes all orders via efficient liquidity routes by @JupiterExchange. But @encifherio at the end of the day it's a whole protocol which enables computation on encrypted state so yes we can build a dark pool on top of it which would support order matching among encrypted tokens That's the goal once we have good enough liquidity wrapped/encrypted we would start building/onboarding team to build usecases like darkpool on top of this liquidity. > How do you test for potential privacy leakage or metadata correlation? Two solutions here: 1. Users order/intents/txns are not linked to their addresses which is the first defense for user privacy. 2. We've an unified order data structure design in place which makes sure any sort of order (swap, lend etc) follows the same order structure. While the inputs of those orders would be encrypted so external parties wouldn't know whether a certain property actually holds a value or it's just null all along. And hence preventing any insights from non-uniform orders. 3. We will make sure to use services which would even obfuscate the ip address from the client who is placing the order. > What’s your approach to maintaining a strong anonymity set as user activity grows? TL;DR More Defi primitives would lure users to keep their funds wrapped within Encifher, And hence the activity would drive the overall anonymity set. The near term vision of Encifher is to become a ecosystem of privacy enabled Defi on Solana. We will be offering multiple Defi primitives in a single place encrypt[.]trade. The anonymity sets problem gets magnified in senarios where users immediately remove assets from the pool but in our scenario users could just wrap their token one and keep them within the protocol given we support multiple Defi primitives and in general the user transactions via these primitives would also gonna increase anonymity set and it'd be way harder for external entities to link unwrap to wrap. > Do you see Encifher evolving into a full encrypted compute layer for Solana DeFi? Yes, Encifher is designed from scratch considering transactional privacy needs on Solana. It's not like other general purpose privacy compute layer which enables privacy compute for all the use cases. Instead our major focus is toward enabling private Defi and hence built ground up considering transactional privacy needs.