Problem Statement

Despite Web3's decentralized breakthroughs, users face serious privacy challenges:

1. Lack of Native Privacy

Public blockchains expose all data by default. Anyone can:

• Trace token flows

• Monitor wallet behaviors

• Analyze on-chain actions for patterns

There’s no built-in way to hide your activity or unlink your accounts, making every user vulnerable to surveillance and behavioral profiling.

2. Wallets Are Identities

In Web3, your wallet is your login, bank account, and public profile—all in one. This introduces major privacy risks:

• Wallets can be tied to Twitter handles or ENS domains

• Employers, clients, or communities can track your financial movements

• Lost pseudonymity can lead to targeted phishing or worse

3. Payments Are Fully Traceable

When you pay someone on-chain, the amount, sender, recipient, and timestamp are all visible. This harms:

• Freelancers seeking private income

• Donors contributing to sensitive causes

• DAOs paying contributors discreetly

There is no native mechanism to unlink sender and receiver or mask payment details.

4. Centralized Privacy Solutions = Censorship Risk

Tools like Tornado Cash offered partial privacy—but they relied on centralized frontends or relayers. This made them vulnerable to:

• Regulatory takedowns

• Censorship

• Blacklisting

Silensio believes that true privacy must be decentralized and provable.