Huang Lin, CTO of Suterusu, revealed to Cointelegraph China on March 16 Hub event that the project launches one of the first layer two privacy mining programs on the Binance smart channel.
According to Lin, Suterusu is a blockchain-independent privacy preservation platform. Its features include a constant test size, zero configuration ZK-conSNARK, which is based on the principle of incentive compatibility in game theory and a core model in the proof-of-stake consensus mechanism.
Lin revealed that the technical solution of the Suterusu protocol was carried out by himself, researchers from the National Academy of Sciences of France and cryptography experts from the Karlsruhe Institute of Technology in Germany. Meanwhile, the company paper “Efficient Range Proofs with Transparent Setup from Bounded Integer Commitments” was included in Eurocrypt 2021, the largest international crypto conference.
He explained that Suterusu brings Zcash-level privacy to any blockchain platform or application. It incorporates a state-of-the-art trustless ZK-SNARK scheme with nearly constant size proofs, efficient proof generation and verification. Suterusu has also introduced a Suter Virtual Machine, or SuterVM, which supports smart contract blockchains, such as Ethereum.
Although Lin believes privacy is the most complex and difficult aspect in blockchain, he is very confident in the technology. He added:
“As we all know, Zcash was the first to develop the ZK-SNARK zero-knowledge proof protocol. This protocol still has security issues caused by trusted presets. The confidence setting is equivalent to a hidden bomb. Once the attacker steals the trap information from the trust initialization setup step, the bomb will explode and the attacker can use it to launch a double-flower attack, and the attack cannot be detected.
Suterusu designed their token economy system to bring important functionality to the blockchain ecosystem. First, it provides long-term security mechanisms for its network of points of sale; second, it enables effective incentives for multiple ecosystem actors. This will also provide sufficient liquidity of node assets, according to Lin.
As for its token economy, the Suter token has a total supply of 10 billion, of which 4.8% is reserved for the team, 3.2% is for the foundation, 16% is for private sale and 76 % are staked. The distribution of tokens to the team and the foundation will be blocked for three years.
The Suter token adopts a deflationary release model, which means that the annual supply halves every two years. Almost 16% of the total is extracted in the first year. The annual supply and the cumulative volume in circulation per staking are presented in the following graph.
Suterusu vs. Tornado Cash
Lin pointed out that Suterusu’s approach is quite unique. It aims to maximize the level of privacy that is possible to achieve with Suterusu, and at the same time, it differs from all other cash extraction programs based on total locked value.
Lin said that Suterusu mining will be based solely on the volumes produced: the more transactions, the more rewards.
Comparing both Suter Shield and Tornado Cash, Lin said both aim to help users protect the privacy of their assets and personal information in a public ledger. Tornado Cash has managed to achieve a large TVL and is the tool most used by whales to keep their funds confidential. On the other hand, Suter Shield wants to be the average Joe’s privacy protection tool by designing and developing all the features needed by retail users who are now cut off due to the minimum and fixed sizes required by Tornado Cash and mostly through Ethereum transaction fees.
Lin continued that the Suterusu protocol is built on an original ZK-conSNARK scheme. It does not require a trusted configuration and can protect both the identity of the users and the amount of the transaction. In contrast, Tornado Cash’s ZK-SNARK proofs require trust setup (which is a huge security flaw) and cannot protect the transaction amount, which can only be fixed numbers and requires users to perform multiple transactions for a random transactional amount. Lin also believes that a large TVL does not guarantee confidentiality if people have to transact privately for a short period of time. He said:
“Even with a privacy protection tool like Tornado, cash with extended TVL, low transaction density on the network cannot fully protect your privacy.”
The only way to create a true privacy protection system is to have frequent transactions entering and leaving the network, Lin believes. He said:
“This is exactly the goal of the Suter Shield Privacy data mining program on Binance Smart Chain: to increase the volume of transactions in the Suter Network and to reward users exclusively based on the number of volumes they have generated. Different from Tornado Cash or other space players who reward you based on your TVL, Suter Shield rewards you based on how often you use the network.
Lin eventually revealed that the project plans to collaborate with other projects in the BSC ecosystem that work on decentralized exchanges, wallets, lending, insurance and cash extraction.
According to Lin, PackShield, the world’s top blockchain audit and security company, has completed the Suter Shield contract audit, and Suter Shield is safe to use.
Suterusu’s future development will focus on two dimensions, according to Lin. The first is protocol level docking, and the second is some application plugins developed by Suterusu, such as flash loans based on private transactions.