Raze Network Introduction: Cross-Chain Privacy Middleware for DeFi and Web3.0
If you think the cryptocurrency space needs more anonymity, we have great news for you.
The Raze Network is a Polkadot-based protocol that promises confidentiality for all DeFi transactions. It provides “a second-layer decentralized anonymous payment module” that is trustless and cross-chain, while also providing auditable activity.
RAZE Network tackles privacy in a new way
● The Raze Network will allow the user to hide their personal and financial information by transforming their cryptocurrency of choice into an anonymous ERC-20 token.
● With the RAZE token, the user can operate inside the DeFi ecosystem, interact with any product or service, make all the desired transactions. There will be no trading history.
● Then, the user can use the redeem function to transform the RAZE token back into its original form.
Technically, the operation consists of a Substrate-based smart contract that uses Zether’s anonymous payment mechanism, and applies zkSNARKs to it “to build a second-layer decentralized anonymous module.”
That sounds too complicated, we know. It isn’t.
Let’s break it all down and shed some light on the project.
What are Polkadot and Substrate, exactly?
The Polkadot platform has been called “the Internet of blockchains.” It offers a way to connect:
● All kinds of blockchains, big and small, public and private.
● Permissionless and private networks
● Decentralized applications
● Oracles
They’re able to “exchange information and transactions in a trustless way via the Polkadot relay chain.” Any kind of data, not just tokens.
Polkadot’s aim is to create a completely decentralized web, the utopia they’re calling Web3.0 or Web3.
To take things one step further, they created a framework for building customized blockchains called Substrate. The system provides pre-built components and gives you the tools to create your own. It can also be used to create smart contracts, and that’s the tool The Raze Network is working with.
What is Zether?
It’s an anonymous payment solution created with Ethereum in mind. The system works similarly to The Raze Network’s one, but it doesn’t use zkSNARKs. Also, since every Ethereum transaction requires gas that can only be paid in Ether, your Ethereum address might end up associated with the transaction in question.
The zkSNARKs Tool
This catchy acronym stands for “Zero-Knowledge Succinct Non-Interactive Argument of Knowledge.” It’s a tool with which a user can prove to a verifier that it possesses certain information without revealing said information. A crucial component for the anonymity and privacy that The Raze Network aims to provide.
How will The Raze Network benefit the DeFi ecosystem?
● For now, The Raze Network will focus on DeFi services. Using Polkadot’s cross-chain interoperability, they’ll be able to work in and with Uniswap, AAVE, Compound. All of them, really.
● This, in turn, will bring liquidity to the Polkadot network. Working alongside the very active Ethereum projects that define the current DeFi ecosystem will bring benefits to all.
● In time, Raze could anonymize all of the transactions in all of the blockchains. Polkadot’s cross-chain superpowers make this a theoretical possibility, and the Raze team knows this.
A look into Raze Network Investors
After a successful first round of funding, so far, this project is backed by these fine institutions:
● Signum Capital
● Spark Digital Capital
● AU21 Capital
● CMS Holdings
● Master Ventures
● PNYX Ventures
● Moonwhale
● Flurry Capital
So, what does The Raze Network do again?
To summarize: Using Substrate, they’ll build a second-layer privacy protocol that’s native to the Polkadot network. It will be decentralized, auditable, completely anonymous, and cross-chain. It’ll be made for interaction with all DeFi projects and it’ll bring much-needed protection from surveillance to the ecosystem.
The Raze Network be able to perform three actions:
● Mint: Transform any cryptocurrency into an anonymous and untraceable token.
● Transfer: Said token can travel all across the network without leaving any trace whatsoever.
● Redeem: When you’re done, this function will transform the RAZE token back to the original cryptocurrency.
RAZE Token Introduction
The RAZE token is the heart of this project. If everything works out, it will be ubiquitous. It’ll become a force to be reckoned with. But, what can it exactly do?
● Provide privacy: Frictionless, it can travel all around the blockchain ecosystem without revealing amounts being transacted or any of the user’s identity.
● Provide voting rights: By holding RAZE tokens the user will be able to participate in the governance of The Raze Network.
● Medium of exchange: Users will be able to pay for services within the network with the RAZE token.
● Liquidity Rewards: Those who provide liquidity to the network will receive RAZE tokens as a… token of the network’s appreciation.
It should be said that a percentage of the transaction fees will be burned to augment scarcity. And, as we said, transaction fees will be paid in RAZE tokens.
The RAZE Network Tokenomics
“There will be a total of 120 million RAZE tokens. As soon as the project starts there will be a Token Generation Event or TGE, and the coins will be distributed like this:”
d● 6% for the seed sale
● 14% for a private sale
● 3.5% for a public sale
● 40% for liquidity rewards
● 15% as an operational reserve
● 8.5% for the vault
● 10% for the team
● 3% for advisors
They will not all hit the market immediately. Most of those coins will be locked at first, and then periodically released over a period of months.
Conclusions
The Raze Network’s value proposition is remarkable. Their service will make a giant contribution to the decentralized Internet, and the Raze team is creating something DeFi users actually need.
