".What happens when a crypto instruction can be published onchain without revealing what it says?".
That is the idea behind Nillion's Covenants, a core building block of its Encrypted Markets vision.
Instead of exposing an order or trading strategy immediately, a user can seal an instruction to a specific condition. The instruction remains encrypted until that condition is met, then the network's nodes help decrypt it.
Nillion's Dusk phase is designed to bring this system to Ethereum. One important part is the permissionless node network, where operators can participate by staking NIL and earn rewards according to their stake.
This creates an interesting design choice: the network isn't just trying to hide trading information. It also aims to make the process of revealing and executing an instruction depend on verifiable conditions rather than a single trusted operator.
For example, a conditional order could remain hidden until a particular market event occurs. That may help reduce the advantage of traders who currently see public order information before execution.
The real test is whether these encrypted instructions can work efficiently onchain, with reliable condition checks and practical costs for developers.
".Privacy in markets is not only about keeping data secret. It's about controlling when information becomes actionable."....
#nil $NIL @Nillion
That is the idea behind Nillion's Covenants, a core building block of its Encrypted Markets vision.
Instead of exposing an order or trading strategy immediately, a user can seal an instruction to a specific condition. The instruction remains encrypted until that condition is met, then the network's nodes help decrypt it.
Nillion's Dusk phase is designed to bring this system to Ethereum. One important part is the permissionless node network, where operators can participate by staking NIL and earn rewards according to their stake.
This creates an interesting design choice: the network isn't just trying to hide trading information. It also aims to make the process of revealing and executing an instruction depend on verifiable conditions rather than a single trusted operator.
For example, a conditional order could remain hidden until a particular market event occurs. That may help reduce the advantage of traders who currently see public order information before execution.
The real test is whether these encrypted instructions can work efficiently onchain, with reliable condition checks and practical costs for developers.
".Privacy in markets is not only about keeping data secret. It's about controlling when information becomes actionable."....
#nil $NIL @Nillion