Introducing Triple Masking: Building a Web3 Foundation for Web2

Introducing Triple Masking: Building a Web3 Foundation for Web2

Through compliance and confidentiality tools, Findora has made institutional adoption possible.

Making Web3 Suitable for Web2 Institutions

For more than 14 years, many talented and innovative teams have labored to create a decentralized internet. They have worked to remake our digital existence to be more censorship-resistant and freedom-oriented. This was the dawn of Web3.

Engineers sketched out systems of self-sovereign and decentralized identity that could make all personal data user-owned. Yet despite grass-roots support and enthusiasm, despite talent, innovation, and money, adoption has always been slow.

But why? Why has mainstream adoption been slow when there has always been so much potential?

Partly, it’s because financial institutions are known for being resistant to change and risk. But another reason is that Web3 hasn’t been suitable for mainstream institutional adoption.

Blockchains were both too transparent for business use and too risky from a regulatory standpoint. On the one hand, operating on an open ledger meant businesses forever risked leaking sensitive information like salaries and trading strategies. And on the other, the pseudonymous nature of blockchains made compliance with KYC and AML regulations impossible for banks and financial institutions. 

To spur institutional adoption, web3 needed a comprehensive compliance solution that supported consumer protection. That solution is Triple Masking.

Web3 needed a compliance solution that could also itself comply with consumer protection laws.

Even Web3 ideas like decentralized ID needed to wait for an on-chain encryption. Without it, decentralized identities can easily serve as a tool for mass surveillance as they can for freedom when combined with NFTs on immutable ledgers. 

Triple Masking fixes all these issues. By combing compliance with confidentiality, it steers a middle course between the extremes of secrecy and total transparency, creating a solid foundation for Web2 to move into Web3.

What is Triple Masking?

Triple Masking is a cutting-edge technology that encrypts sensitive on-chain data so that it is not visible publicly on block explorers. The wallet addresses, transaction amounts, and token types used in transactions can remain encrypted on-chain to satisfy consumer protection laws. 

At the same time, it simplifies compliance, and token issuers can utilize the asset tracing function to access a record of the transactions as needed. Thus, by marrying confidentiality and compliance, Triple Masking paves the way for Web2 institutions, entities, and businesses to transition into Web3 ecosystems.

Stay up to date

See how Findora is building ZK in the Web3 space by signing up for our newsletter

One of the key aspects of Triple Masking is its ability to enable encrypted decentralized IDs and attach them to wallet addresses, making the technology much more attractive and secure. Combining DiD with the ability to encrypt transaction amounts enables use cases like company payrolls, secret DAO voting, and customer loyalty programs – all in a compliant way.

Triple Masking is able to do all this through Findora’s cutting-edge zero-knowledge technology. Zero-knowledge proofs validate data on-chain as true without revealing the details of that data; users can protect their on-chain data from being publicly exposed while still allowing access to key parties as they need.

Built For Institutional Adoption

Findora’s founders, like John Powers, came from the financial industry of Web2. They had an intimate understanding of how blockchains needed to evolve to earn institutional trust and investment. Triple Masking represents the fulfillment of their original vision. It is the crowning jewel of Findora’s product suite and mission, which is to develop:

“…a solution set that provides a user with the choice to retain confidentiality while at the same time providing a mechanism that supports regulatory compliance regarding asset tracing and other applicable laws. It isn’t an exaggeration to say that this solution is what the blockchain industry has been waiting for.

Triple Masking also opens up a slew of new use cases:

Payroll Infrastructure

Developers can use Triple Masking to build payroll dApps for DAOs and businesses. Employers will be able to send on-chain payments that are fully auditable to accountants and tax authorities without revealing the amounts paid to employees, contractors, and vendors. Triple Masking can be paired with real-time settlement solutions to provide an alternative to payday loans that can be implemented globally.

International Payments

International payments are tedious, expensive, and slow. With Triple Masking, international payments can have all the same identity protections consumers are used to while being faster and more efficient than existing infrastructure like SWIFT.

Reward Programs

When combined with DiD systems, Triple Masking allows companies like Starbucks and Delta to run reward programs that protect consumer identities and wallet address, as required by law. Blockchains are already capable of facilitating customer-loyalty reward programs. But triple masking lets on-chain reward programs to be able to protect users’ personal data while also satisfying auditor inquiries.

DAO Empowerment

Triple Masking can also be used to create secret ballot voting for DAOs. Though transparent votes are essential, anonymous voting can be important in certain circumstances and help reduce a bandwagoning effect. It can also be used to confidentially pay community rewards.

Learn More About what ZK can do for DAOs

Confidential Stablecoins

Tokens like USDC and USDT will be better suited to business applications.

Tokens like USDT and USDC will be able to be used for confidential business payments. At the same time, token issuers will be able to protect themselves from OFAC sanctions through Triple Masking’s asset tracing capability.

Built So Developers Can Build

Compatible with EVM Chains

Relying on Findora’s unique, dual-chain architecture, Triple Masking extends to FRC20, FRC721, and FRC1155 tokens so that any number of dApps can be built. By its structure, the chain is EVM compatible and provides compatibility with Ethereum and Ethereum ecosystems.

Plug-and-Play Programmability 

This isn’t a dark coin or token mixer. It’s a plug-and-play solution for encrypted on-chain data that was made with builders in mind. Triple Masking lets developers easily integrate zero-knowledge compliance and confidentiality into their dApps. Findora has developed a Triple Masking SDK and an industry client to make it easier for developers to leverage Findora’s ZK functions in their dApps.

Redefining Our Relationship To Data

Triple Masking is a huge step forward for Web3. It matures the industry so that it is ready to bear the weight of Web2 institutions.

Banks and financial entities can enjoy the efficiencies of blockchain while still being able to satisfy KYC regulations and consumer protection laws that require selective transparency. Triple masking gives financial institutions the confidence they need to move into the space. Businesses and dApps will be able to leverage functions that weren’t previously available to them, and users will have more control of their on-chain data.

Stay tuned in the coming weeks as we explore how Triple Masking works and what it means for the institutional adoption of Web3!

Build on Findora

Apply for a Findora Grant to build zk in Web3

About Findora

Findora is a Layer-1 protocol delivering zero-knowledge solutions to Web3.

Findora integrates two ledgers into a single chain: an EVM ledger for interoperability and a UXTO ledger optimized for zk operations. This dual-layer architecture lets Findora encrypt blockchain data for programmable transparency and public use. By providing new use cases, Findora’s zk tech prepares Web3 for real-world adoption.

We appreciate our developers and would love to onboard you to the Findora ecosystem. Please reach out, and join our social channels for more.

Discord | Twitter | Reddit | Telegram | YouTube | LinkedIn | Facebook | Newsletter