The introduction of Bitcoin and other blockchain-based projects have ushered in a new age of decentralized architecture. However, the intense verification and the public nature of blockchain technology have also limited its potential use cases. The current design cannot handle privacy at all when it comes to handling private data.
Of all the decentralized computation platforms that have aimed at solving such privacy issues, Enigma is poised to become of the most efficient and effective ones. Focusing largely on privacy and scalability, Enigma presents a protocol that is designed to allow end to end decentralization applications, which are scalable in nature.
What Is Enigma & How Does It Work?
Enigma is developed as a decentralized computation platform with a guaranteed level of privacy, with the eventual aim of building “privacy by design”. It is aimed at achieving an end to end decentralization, without any trusted third party interference’s. Its main focus is on privacy and scalability as described below.
⦁ Scalability: Computations and data storage in Enigma is not replicated by all the nodes in the network, as is the case with normal blockchain networks. In this case, only a small subset is responsible for performing each computation, over the different parts of the data. As a result, more demanding computations can be performed due to the decreased redundancy in computation and storage.
⦁ Privacy: Enigma uses Secure Multi-party Computation or sMPC. This allows data queries to be computed in a distributed way, without the need for a trusted third party as stated above. It is achieved by splitting the data between different nodes, to allow them to compute functions together without leaking any information to each other. As a result, no single party can access the data in its entirety.
Thus, Enigma allows computations to be run on data, without having access to the raw data itself.
What Are They Trying To Do?
Enigma is designed with the aim of connecting an existing blockchain network; along with off-load intensive and private computations, with an off-chain network. Transactions, which are facilitated by the blockchain, allow access control to be enforced on programmable permissions, as well as digital signatures.
Enigma’s code is executed both on Enigma’s private network, as well as on the blockchain. Since a blockchain alone can only ensure correctness, Enigma’s execution ensures privacy as well. They store “proofs of correct execution” on the blockchain, which can also be audited.
About Enigma’s Scripting Language
Engima supplies a scripting language to help users design end to end, private contract-driven decentralised applications. Enigma’s scripting language is “turing-complete”, allowing computational work to be spread evenly across the network. It uses an interpreter to break down the execution of a private contract, which results in a much more improved run time while maintaining the same level of privacy and verifiability.
What Makes Enigma Unique?
The Enigma project is part of the long-term vision of the team, aimed at revolutionising data management on the web. The Enigma project consists of Catalyst, which is a unique platform allowing traders to create unique trading algorithms on their own.
About Enigma’s Catalyst Platform
Catalyst is one of the first applications built using the Enigma Catalyst. It is a platform focusing on data-driven crypto-asset research and investing, which targets professional cryptocurrency traders. The platform gives users the ability to curate, as well as share data, to develop profitable investment strategies on their own. The Enigma token’s short term value is expected to be driven by the usage of the Catalyst platform.
How Does Enigma Plan To Achieve Its Goals?
The aforementioned off-chain network is one of Enigma’s unique utilities. It solves much of the issues plaguing normal blockchain networks as mentioned in brief below.
⦁ Privacy-enforcing computation: The Engima network is capable of executing codes without leaking any raw data to any of the other nodes, ensuring correct execution. This replaces the existing centralised solutions and trusted overlay networks which are used in normal blockchain networks.
⦁ Off-Chain storage: Enigma’s off-chain nodes allow it to construct a distributed database. Since each node has a distinct view of shares and encrypted data, the computation process is guaranteed fault-tolerant and preserves privacy.
⦁ Heavy processing: Enigma’s off-chain computational network can be used to run heavy computations that are publicly verifiable, something not possible with normal blockchain networks.
⦁ Storage: Enigma’s decentralized off chain distributed hash table stores references to the data without storing the data directly. It also provides a simple API for encrypting private data on the client side, before it’s stored.
Use Cases of Enigma
The successful implementation of the Enigma Project would allow it to have varied usecases spreading across different industries. Some of them are mentioned in brief below.
⦁ Data Marketplace: Enigma’s guaranteed privacy, increased security and autonomous control would allow it to be used for a direct consumer to the business marketplace for data. This would allow for lower costs for customer acquisition in the long-run.
⦁ Credit: The Enigma project would allow borrowers to establish their trustworthiness in a decentralized banking system. They can do this without exposing their data directly to lenders.
⦁ Healthcare and Genomics: The privacy offered by Enigma would allow healthcare companies to provide data to researchers privately. This can be done without compromising privacy, which would allow for more innovations later on.
⦁ IoT: Decentralized marketplaces can create value for the rapidly advancing Internet of Things or IoT devices. Marketplaces like these require privacy for off-chain computations, which is ideal for Enigma.
Latest Technological Advancements & Updates
On December 23rd, it was announced by the Enigma team that it would launch its very first networked testnet. This is the first major release after Enigma’s developer testnet which was released back in June.
Enigma’s networked testnet allows “secret node” runners to connect Enigma’s discovery testnet. Secret Nodes refer to network participants who run a node in the network. They are responsible for ensuring whether secret contracts are executed in a privacy-preserving manner.
The Enigma Project is different in terms of efficiency and decentralized sharing of data. With newer, timely technological updates and a dedicated team behind it, it is well on its way in attracting companies and individuals that do not want to work under a centralized authority when dealing with data.
The Engima token, ENG, is valued at $ 0.424616 USD with a market cap of $ 31,776,638 USD. The token is already ranked 100th by coinmarketcap as of 24/12/2019 and is traded across 27 markets in exchanges such as HitBTC, GoPAx, and Huobi.
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