Executive Summary
Obscuro is a privacy-focused, general-purpose Ethereum Layer 2 (L2) solution that combines the best features of Optimistic and ZK rollups. Its key highlights include enhanced privacy, MEV prevention, scalability, and reduced gas fees. Obscuro targets developers and users seeking privacy-focused applications and lower gas fees. Its competitive advantages include general-purpose capabilities and compatibility with existing Ethereum smart contracts and developer tools.
Company/Project Overview
Obscuro is a decentralized, privacy-focused Ethereum L2 solution that offers a more decentralized network with privacy, data confidentiality (private balances, transacting, etc.), and MEV prevention baked in. Its core team is part of the team that built Corda, regarded as the world’s most successful enterprise blockchain platform.
Obscuro aims to solve the sweet spot between the existing rollup-based L2 offerings Optimistic and ZK Rollups. The use of confidential computing techniques coupled with economic incentives allows Obscuro to retain the performance and programming model simplicity of Optimistic rollups, attain confidentiality, short withdrawal periods, and address MEV prevention of ZK Rollups.
Market Analysis
Obscuro is targeting developers and users interested in privacy-focused applications and lower gas fees. The Ethereum market is witnessing rapid growth in privacy and scalability solutions. Obscuro faces competition from other L2 solutions, including Optimistic rollups, ZK-Rollups, and other players like Oasis Protocol, Ajuna Network, and Super Protocol.
Product/Platform
Obscuro offers programmable privacy for DeFi, allowing developers to choose what to keep private and what to make public. This includes Hedge funds, Large Financial Institutions, Market Makers, personal name services, sealed bid auctions, dark pools and OTC trading, commercial agreements, gaming, and social networks. Obscuro also allows for public events on Ethereum applications that require a reliable random number generator that miners cannot game.
Governance Model
The governance of Obscuro is enabled through the use of its native token. Token holders can participate in the governance of Obscuro by proposing changes and voting on proposals. This model ensures that the economic model evolves over the lifetime of Obscuro via governance proposals.
The initial token supply of OBX is set at 1,000,000,000. There is no minting or burning in the Obscuro protocol design. The Obscuro Foundation DAO controls the ongoing tokenomics for the Obscuro Mainnet according to the DAO’s constitution.
Risk Assessment
Obscuro investment carries regulatory and compliance risks as the project must navigate the evolving regulatory landscape for blockchain and cryptocurrency. Moreover, Obscuro faces competition from other L2 solutions and emerging privacy technologies, which poses market and competitive risks. Additionally, potential vulnerabilities in TEEs and other components of the platform must be addressed to ensure security, thereby posing technological and cybersecurity risks.
Conclusion
Obscuro is an Ethereum L2 solution that focuses on privacy, scalability, and compatibility with Ethereum, making it unique from other L2 solutions. With its key highlights, including enhanced privacy, MEV prevention, scalability, and reduced gas fees, it is a promising opportunity. It is a decentralized platform that offers data confidentiality and MEV prevention. Moreover, its general-purpose capabilities and compatibility with existing Ethereum smart contracts and developer tools give it a competitive edge.
