What is the Blank Wallet? Before we answer that, let’s start with the problem. There’s been a general problem in the DeFi space concerning transparency and immutability. These two values go hand in hand in all dominant blockchain platforms. However, it has been clear with today’s existing solutions that users must either experience friction or deal with centralized organizations if they wish to remain less transparent and anonymous in their DeFi ventures.
To solve the issue, one platform came up with the Blank wallet which will fight both friction and centralization. Blank has a strong belief that everyone has rights to their privacy. Moreover, privacy is not something to “opt-in”, rather it is something that you can occasionally “opt-out”. Blank is the most private, non-custodial Ethereum browser wallet. So it will use smart contracts which will allow users to hide the amounts and origins of cryptocurrency held. The whole process will be done in a decentralized and frictionless manner. Furthermore, every time a users make withdrawals, Blank will create a new wallet address for you with the amount of crypto that you request, originating from the smart contract where everyone’s funds pool.
So... how exactly does it work?
The Blank Wallet V1 functionally will be based on Tornado Cash private transactions. So the Tornado Cash tool will allow any address to send or mix their Ether in a non-custodial way based on strong cryptography. The process uses smart contracts which provides complete privacy. This is all done by using the zkSnarks proofs. The zkSnarks proof is a zero-knowledge proof which is to convince a verifier that a prover possesses knowledge of a secret parameter.
How do deposits work?
Now for a user to make a deposit, the user will generate a secret and send the Pedersen Hash of a nullifier and the secret, along with the funds to mix, to the smart contract. This is known as a commitment and is accepted by the contract along with the funds.
How do withdrawals work?
To make a withdrawal, the user needs to provide proof that they possess a secret to an unspent commitment in the smart contract. The zkSnarks technology will be able to achieve this without needing to reveal the deposit which corresponds to the secret. So the withdrawing address can not be connected to the depositing address in any way.
The BLANK Token...
Blank is a project built by and for the community. The team behind blank hopes to share values held by the team and users. This vision primarily focuses on the regaining of rights to privacy and anonymity. Blank will be able to achieve success with more and more users adopting and joining the ecosystem. Furthermore Blank will be strengthened with the use of the BLANK utility token. The holders of the token will become a crucial pillar for Blank’s growth. It will help ensure liquidity provision for the platform, serve as a marketing mechanism and also strongly engrain the name of the project into the DeFi space. Most importantly, BLANK has been built in a way that is deeply rooted in the Blank ecosystem. There are five main ways that the BLANK token has become an integral part of the wallet and that includes:
BLANK token holders can enjoy notable fee reductions. The fee reduction will be tier-based and dependent on the amount of tokens held: 1,000 tokens = 10% fee reduction; 5,000 tokens = 15% fee reduction; 10,000 = 25% fee reduction.
Token Burn from 1/3 of the Fees
One third of the fees collected from the Blank wallet’s smart contracts will be used to buy back the BLANK tokens from the market and burn them. This will reduce the circulating token supply. This strategy will help ensure long-term success for the platform.
ETH/BLANK Liquidity Providers earn 1/3 of the Fees
By contributing tokens to a DEX liquidity pool, it will ensure that BLANK tokens are available to trade when needed. Hence, when there’s a need to reward the users, the platform will send a third of the fees to those staking the ETH/BLANK pair on Uniswap.
Referral and Reward Systems
An important feature of Blank is the referral and rewards system. Wallet users, influencers, social media accounts, blogs or news outlets can all receive their referral rewards in the form of BLANK tokens. Moreover, airdrops that provide liquidity to the wallet will be sent only as BLANK tokens.
Exclusive Features and "Access-first" Functionality
A few of Blank’s features will be limited to only those holding BLANK tokens. An example of this is non-token holders may not have access to as many hosted addresses.
So why should I use Blank?
Blank provides a seamless integration with the anonymity pool to help create a user-friendly browser extension wallet. With Blank, the users do not have to write down their secret phrases or go through tedious transaction processes or even manually create several wallets. The easy usage of the wallet and the various privacy features ensures high efficiency and complete anonymity. A lot of blockchain users are also easily susceptible to off-chain tracking. This is mainly due to the node and dApp providers receiving data from users, creating extensive tracking by fingerprinting and profiling the user’s requests. To protect the users from tracking, both on-chain and off-chain, Tor will be integrated into Blank. This means that instead of sending transactions to node providers or interacting with dApps, it can all be done with the Tor Network instead!
One of the biggest concerns you probably have is… security:
There is no doubt that security is one of the biggest factors to consider when it comes to a cryptocurrency wallet software. Blank is fully aware of this and approaches security with the highest level of attention. The team behind Blank believes that security and privacy goes hand in hand. With the usage of proven and audited technology and best practices it will ensure maximum security. The basic infrastructure on Blank is built by utilizing already existing solutions that have been proven many times. All the sensitive data including addresses, keys, and account data will be stored in the browser’s local storage. The user will have total control over their wallet.
The team leverages audited and proven open-source solutions to eliminate the possibility of an error. In addition to the keys and accounts, the Tornado secrets will also need to be stored safely inside the browser extension storage. This will keep a minimum surface of attack, all the secrets they need for zkSnarks will derive from the wallet’s seed phrase. So this will mean that the user only has to save the seed phrase to be able to import all the wallet data, including the zkSnark secrets.
Are there any risks that I should know about before jumping in?
With any product, there are many risks, but the team behind Blank wallet tries its best by identifying and preventing the possible risks from occurring. A few possible risks that can happen include…:
Insufficient Capital Pooled to provide Privacy
The expectation is that Blank v2 supports ERC-20 deposits. Since the privacy of Blank wallet is highly correlated with the funds deposited and the usage of Blank functionality, it is important to have initial liquidity in place to provide anonymity. Therefore, an insufficient capital pool may be detrimental to Blank.
High Gas Fees due to zkSnark Applications
Another issue that may occur is high gas fees. This can occur if industry-wide events such as extreme volatility occurs causing the Ethereum network to experience higher than usual gas fees. This can then result in the Blank wallet also being more expensive to use.
Market Volatility for Assets Raised
Blank Wallet aims to raise funds in ETH. There were a few cases in the past where they will raise funds in ETH lost more than 90% of its value over the course of a year. While Blank Wallet follows a similar path, it will go through a much more strict process by minimizing stoppages and disturbances to the overall development of the project. This will be done by using GoBlank OU converting enough ETH to cover for 6 months of development costs. Then, the company will continue to liquidate ETH to ensure enough capital is available at any time for 6 months worth of development.
Threats to DeFi Hacks
It is widely known that the DeFi space often faces lots of hacks. To limit these concerns happening to Blank, the team adopted industry-proven strategies to ensure efficient payment. All codes will be audited before releasing to the public and there is a bug bounty program in place that will help users detect bugs for a reward.
Q1 2021 - Blank V1
- Web extension wallet with Tornado.Cash relayer → using existing Tornado.Cash infrastructure (0.1; 1; 10 and 100 ETH smart contracts with already pooled ETH) to deliver basic privacy functionality within a wallet.
- Proof-of-funds compliance key → choose who you provide your transparency to. Providing a compliance key of specific withdrawn addresses would reveal the origins of the deposit.
- Public Security Audit → security measures before the release of V1 to ensure safety of funds held on Blank Wallet.
Q2 2021 - Blank V2
- ERC-20 Support → allowing any ERC-20 token deposits; promoting WBTC pool
- Automatic deposits → depositing funds into any personal Blank Wallet address will automatically send into the main Blank pool.
- One time address → each time withdrawing from the main Blank pool would automatically create a new address to withdraw into.
- Referral system → Tracking deposits of referred users and rewarding the referrer in BLANK tokens.
- Web 3 compatibility → connect to all DeFi applications.
- Blank functionality integration to Metamask snaps PlugIn → while still in Alpha, a full release would allow existing MetaMask users to install additional plugins, such as Blank plugin, to get additional features on their existing MetaMask wallet.
- Tor integration → The relayers, dApp sites or node providers could theoretically track users by the IP address the requests for deposit or withdrawal are coming from and thus connect depositing and withdrawing addresses. To mitigate this, you can use Tor, so no one can track the user’s IP and changes with each action.
Q4 2021 - Blank V3
- Partial withdrawal → independent ETH pools, no longer based as Tornado.Cash relayers, instead of withdrawing the same amount deposited.
- Unique pool reward system → anyone can create reward milestones for pooling funds and providing privacy for others.
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