PENUMBRA
Penumbra exists to be a cutting-edge, fully shielded layer-1 network vying in the Cosmos ecosystem. It enables its users to transact securely, stake and swap tokens, and market make without revealing their metadata on-chain. As a fully shielded blockchain, it also offers shielded transactions on the web without compromising on privacy or decentralization — Penumbra has privacy by default, with no transparent transactions or transparent value pool.
Technology used in Penumbra IBC
IBC Integration: Coming in hot at number one is the Inter-Blockchain Communication (IBC) protocol, a groundbreaking and innovative technology that facilitates Penumbra’s operations. It is crucial for enhancing interoperability within the network. IBC also works by enabling different blockchain networks to communicate and exchange data. More so, IBC plays a key role in facilitating seamless asset transfers, data sharing, and interaction between Penumbra. This interoperability and technology help users move tokens and assets across various blockchains without hassle. On the other hand, IBC also contributes to scalability, enhancing fast transactions, optimizing performance, and reducing delay in Penumbra’s network.
Zero-Knowledge Proofs (ZKPs): Penumbra leverages the zero-knowledge proof cryptography technology to ensure that all transactions are verified and validated without revealing any details such as the sender, receiver, or the amount that was transferred
Decentralized Exchange with Privacy: At the core of the Penumbra network is privacy. The network may leverage a decentralized exchange mechanism that fosters the privacy of trades and crypto transactions while also protecting financial data and giving users the right to control the disclosure of their trading strategies.
Use Cases Secure transaction: Penumbra allows users to experiment with shielded transactions in any crypto asset. Since Penumbra is a fully shielded blockchain, it allows users to transact privately, protecting the sender, receiver, amount, and asset types as they move across chains; it ensures transactions are private and cannot be traced or decrypted without a user’s permission. It is worth mentioning that every Penumbra’s address supports viewing capability - this build allows users to opt in to disclose their activity to third parties they authorize for compliance or other reasons. Interestingly, Penumbra transactions operate at the speed of light with low transaction fees. Thanks to the proof-of-stake consensus.
Staking: From a birds-eye view, Penumbra wants to stay at the top of the food chain. Being the world's first shielded proof-of-stake network, their sole purpose is to ensure privacy for delegators and accountability for validators. Another intriguing feature that Penumbra offers is the PEN staking token, which secures the network whilst giving token holders the right to take part in project governance via on-chain voting processes. Every delegate on the network is given a native token known as dPEN. Just so you know, dPENs are recorded in the shielded pools and they can be traded like any other asset. From the on-chain governance side of things, the future of the network lies in the hands of the stakeholders as they vote on proposals and participate in decision-making while ensuring that the project is not controlled by a centralized entity.
Token Swap:
Token Swap is yet another use case for Penumbra. The network supports shielded swaps between any kind of crypto asset — upon submission, all swaps are sealed! By leveraging ZSwap, users can swap any pairs of crypto assets without revealing sensitive details like trading history or timestamps which can potentially help combat financial fraud. While Maximal Extractable Value (MEV) is synonymous with transparent chains, fully shielded chains like Penumbra have no MEV since the network transactions do not leak data about user activity.
Marketmake: The fully shielded chain — Penumbra, gives market makers the control to disclose information about their trading strategies and characteristics instead of revealing all of their activity to the world.