Privacy plays a crucial role in our digital lives, safeguarding daily internet users from malicious actors and prying eyes. For businesses, protecting sensitive and critical data is paramount to avoiding devastating financial losses or reputational damage. In the realm of digital currency, privacy coins were introduced to obscure the movement of value, making them untraceable and unidentifiable compared to non-privacy cryptocurrencies like Bitcoin and Ethereum.
During the Cosmoverse 2023, mix networks became a topic of discussion. For those unfamiliar, mix networks are routing protocols that enhance privacy by sending messages through a series of proxy servers called mixes, creating a communication system that is difficult to trace.
Harry Halpin, CEO of NYM Technologies, spoke about the next generation of privacy infrastructure and introduced Nym mixnet as an innovative decentralized platform designed to revolutionize online privacy. This development holds significant importance given the growing concerns surrounding online surveillance and data privacy.
Harry unveiled the key features of NYM’s decentralized mixnet, showcasing its ability to offer strong privacy protection against advanced surveillance techniques used by organizations like the National Security Agency. He also introduced the underlying technology, the NYX blockchain, which serves as the foundation for mixnet.
Why NYM Mixnet
Addressing the necessity for this innovation, the CEO elaborated on the inadequate privacy structure of the internet when it was first created. The original design did not sufficiently prioritize protecting the privacy of its users.
Consequently, sensitive information such as users’ IP addresses, the timing and volume of their data transmissions, and their online activities has been susceptible to unauthorized access.
To underscore the necessity for change, he went on to provide an illustrative example involving a former NSA employee. This ex-NSA staff member disclosed that even cutting-edge blockchain technologies, such as zero-knowledge proofs and SGX blockchains, are inadequate for safeguarding user privacy.
In simpler terms, these highly regarded technologies still fail to meet the privacy standards demanded by today’s digital environment. Harry proposed that the key to achieving true privacy lies in shielding users at a more fundamental level, beyond the confines of blockchain technology.
The power of a decentralized mixnet
NYM’s solution, the decentralized mixnet, presents a compelling alternative to traditional VPNs and the Tor network. The CEO explained the core concept of mixnet by drawing a comparison to traditional VPNs.
In a typical VPN setup, user data flows through a centralized server that acts as an intermediary between the user and the internet. Although VPNs are recognized for their ability to enhance privacy and security by encrypting data, there is a potential drawback.
The centralized server can identify and monitor the data passing through it. This means that while your data is encrypted to safeguard against external threats, the VPN provider itself could potentially access user data, compromising your privacy.
He pointed out that even Tor, a decentralized network, has vulnerabilities regarding user anonymity. Tor routes user data through volunteer-operated nodes, creating a challenge in tracing it back to the original user.
However, it is important to note that Tor can be exploited in certain cases, particularly when malicious actors gain control over some of the nodes. This compromises the user’s anonymity.
In addition, he explained that NYM’s Mixnet takes a different approach to enhancing user privacy. It achieves this by shuffling and mixing data packets across multiple servers in the network.
This process effectively anonymizes the data to such an extent that even advanced surveillance agencies, renowned for their exceptional tracking capabilities, are unable to monitor users’ online activities. This approach is touted as a superior method for ensuring a significantly higher level of privacy compared to traditional VPNs and even the Tor network.
Other advantages of NYM mixnet
In addition to explaining the functionality of the NYM mixnet, Harry mentioned the ongoing development of a testing product called Nym Connect. The purpose of Nym Connect is to create a mobile-friendly solution that allows users to make regular payments and convert them into NYM tokens through the mixnet. This feature aims to improve user convenience and drive wider adoption.
Harry also highlighted the compatibility of NYM’s technology with various blockchain platforms. Specifically, it has been seamlessly integrated with the Cosmos blockchain, which supports different L1 (Layer 1) blockchains such as Osmosis, Adam, Ethereum, and others. Users can easily interact with the NYM mixnet while verifying their eligibility using credentials managed on the Cosmos blockchain.
To enhance user privacy, NYM utilizes an advanced solution called “ZK Nyms,” which stands for zero-knowledge credentials. These credentials enable users to selectively share specific attributes about themselves while maintaining their anonymity. This feature is invaluable when accessing services and systems without compromising personal information.
Harry called on the Cosmos community, urging them to take part in the NYM network as validators. He revealed that NYM is shifting towards a permissionless system, simplifying the process for validators to join the network. Validators will receive rewards from the reward pool. Individuals interested in becoming validators can acquire NYX tokens to get started.
