Opact Protocol is an attempt to provide on-chain privacy for blockchain users while still preventing malicious activities, such as money laundering or terrorism financing. It has received grants from the Near Protocol and the Kadena blockchains as a R&D project.
The first version was implemented in the Near Protocol L1 with a simple “deposit and withdraw” dynamic, while the second version acts like a private wallet and has been deployed on the Kadena blockchain with more advanced features.
Both versions include AML capabilities, based on Vitalik’s recent article “Blockchain Privacy and Regulatory Compliance”, which describes a model where users are incentivized to demonstrate compliance, while still keeping their privacy. Details on how it works can be found on the Github and Documentation for each project.
Opact was developed by Hack-a-Chain, a Brazilian web 3 laboratory specialized in zero-knowledge and other advanced cryptographic techniques, with the goal of introducing a novel and simple way for users to achieve privacy on the blockchain, a mandatory tool for crypto mass adoption. The project is open-source and Hack-a-Chain is maintaining frontends to access the protocol’s functionalities.
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