gm, readers.

At Automata we work on protecting privacy and fairness. And in this newsletter, we find more reasons to talk about it. Explore headlines and catch up on the biggest crypto news in Web3 privacy.

This week:

• Friend.tech offers login removal options on personal accounts after SIM swaps gave hacks access to personal user information

• Snapchat warned by UK data watchdog over AI chatbot privacy risks

• Solana's latest update introduces ‘Confidential Transfers’, enhancing user privacy with encrypted SPL token transactions

• IoTex launches confidential computing hardware stack that allows developers to derive insights from encrypted data without exposing users’ private information

• 3Commas’ internal investigation uncovers unauthorized access to customer account data

• SEC probes Twitter security breach that led to the exposure of users’ private information pre-Musk takeover

• Hopr launches SafeStaking Audit Competition, featuring a $1M $HOPR bounty fund

• Nym unveils mixFetch, a privacy-enhancing Fetch replacement for secure web apps, along with an updated roadmap

Op-Ed:

• Aleph Zero Foundation explores the maturation of DeFi, spotlights the ongoing neglect of user and data privacy, and calls for privacy-focused solutions

• Co-Founder of Elusiv, a universal encryption layer for Web3 powering the decentralized world, turns to the Tornado Cash story to examine the potential for Web3 to achieve a balance between user privacy and regulatory compliance

Zooming into ZK:

• Polygon Labs partners with ApeCoin DAO to create its own zk-powered Layer-2 blockchain, ApeChain

• Uniswap v3 contracts go live on zkSync Era, with Oku Trade as the first dApp on zkSync Era built on top of Uni V3 contracts

• Eclipse Fi expands its protocol to Linea zkEVM

X Spaces you missed:

• Panther Protocol chats with PureFi Protocol about advancing compliance and privacy in the Web3 space

• Secret Network discusses the state of SocialFi vs Privacy with Fairblock Network and Hybersign Chain

• Oasis Protocol speaks to Ocean Protocol and Celer Network about the key privacy use-cases of Oasis Sapphire

• Harry Halpin, CEO and co-founder of Nym, sits down with Eden Block to talk about all things privacy

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We dive into the details, so you don’t have to:

Polygon Labs proposes developing ApeChain using Polygon CDK 3, an open source toolkit for launching modular zk-powered Layer-2 solutions. Polygon CDK is already popular among projects like Immutable zkEVM, Astar zkEVM and Canto due to its flexible scaling, security and decentralization. The integration of ApeCoin DAO is with the entire Polygon suite, including Polygon PoS, which will soon be upgraded to a zkEVM Validium 2.

Nym reveals its updated roadmap for Q4’23 and 2024, with a renewed focus on privacy-preserving use-cases. A notable addition is the Nym VPN, which combines Nym's mixnet with a multi-hop VPN in one user-friendly application. Users can make private payments in NYM tokens, facilitated by zk-nym credentials, ensuring complete privacy. Zk-nym, a zero-knowledge solution, offers secure payments without retaining any user information, functioning as a 'proof of payment' that preserves user anonymity.

https://twitter.com/nymproject/status/1709989555221201208

Solana's version 1.16 update, after ten months of development, introduces "Confidential Transfers," enhancing user privacy with encrypted Solana Program Library (SPL) token transactions. The process employs zero-knowledge proofs to conduct blockchain transactions without revealing key transaction details, with the update also reducing RAM usage for validators, along with various efficiency and security improvements, further bridging the compatibility gap with Ethereum.

Julian Deschler, the Co-Founder of Elusiv, a universal encryption layer for Web3 powering the decentralized world, noted in an op-ed several takeaways from the fallout of Torando Cash. He highlighted the growing focus on enforcing know-your-customer (KYC) and anti-money laundering (AML) regulations in crypto. While privacy and compliance often appear at odds, he pointed out opportunities to harmonize them, for example, Vitalik Buterin's privacy pools proposal, which leverages zero-knowledge proofs to validate fund sources. These advancements offer a promising direction for preserving privacy without compromising security.

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This newsletter is for informational purposes only. It is not intended to be a substitute for professional financial advice or interpreted as investment advice. Cryptocurrencies are volatile assets and you should always do your own research before making any informed decisions when investing or trading.