The rise of privacy-focused financial blockchain projects will be critical if DeFi (Decentralized Finance) is to have a future. We expect privacy in our “normal” financial life, so we expect it in the blockchain and crypto world, whatever some might claim.
We saw rumors about it in May when the Secret Network blockchain, a privacy-friendly smart contract platform, attracted investments from Arrington Capital and Blocktower Capital. Additionally, it was evident when the decentralized finance company Sienna Network raised $ 11.2 million from institutional investors and public supporters.
It was no coincidence that Sienna is based on the Secret Network mentioned above. For example, Sienna is today introducing its ‘Automated Market Maker’ SiennaSwap, which works on its platform. Sienna token holders can now convert tokens to their private equivalent and then swap them or place them in pools of liquidity for returns.
This means that users can avoid the lack of privacy in exchanges that allow others to see what users are doing and “front-run” those transactions – a major weakness of crypto transactions today – to arbitrage.
Uniswap, PancakseSwap and other DEXs in the crypto ecosystem also play in this data protection area. Where SiennaSwap differs, however, is its privacy-keeping features, which supposedly address the front-running problem. Sienna is also part of the Cøsmos ecosystem, where many new projects are started practically every day to further improve the broader offer.
The launch of SiennaSwap follows the private and public sale of its tokens for $ 11.2 million in May when the organization made a private sale of $ 10 million from investors such as Magnus NGC, Inclusion Capital, Lotus Capital , FBG, Skyvision Capital and others.
It is also perhaps worth noting that Sienna Network is a “carbon-friendly” proof-of-stake (PoS) blockchain that uses significantly less power. Proof-of-work chains like Bitcoin, which require large amounts of electricity from miners.
Tor Bair, Founder of the Secret Foundation, said, “The launch of Siena marks a massive turning point for both Secret’s DeFi ecosystem and DeFi in general. Delivering data protection by design to users is critical to securing and scaling these new financial platforms, which means Sienna is poised to create a new growth explosion. “