5 Dec 2024 ~ CC4 Notes & Links

Community
1

Here we are again, happy December! Penumbra time :). Here’s the recording!

Penumbra Labs Updates:

PENUMBRA IMPROVEMENT PROPOSALS (UIPs):

  1. Spend Backreferences for Sync Speed Improvement (UIP-4, discussion here):
  • Current Problem: Client software has to scan the entire chain forward sequentially to find user transactions
  • Technical Context: Penumbra uses shielded notes (similar to UTXOs but with privacy) where transactions spend certain notes and produce other notes as outputs
  • Privacy Mechanism: Users make ZK proofs of spending some shielded note without revealing which specific one, creating transaction privacy
  • Proposed Solution Details:
    • Users can walk their own “secret transaction graph” of outputs
    • Can detect if notes they control were spent without others being able to see
    • Allows “leaping forward” along user’s own transactions instead of scanning everything
    • Most efficient starting from chain tip and moving backwards since most user activity is recent
    • Expected to be particularly beneficial for mobile wallet performance
  1. IBC Packet Forwarding (UIP-5 - Penumbra Improvement Proposals (UIPs), discussion here):
  • Current Issue: Assets that travel across multiple chains (e.g., Noble → Osmosis → Penumbra) require manual unwinding
  • Technical Solution: Adding ICS-20 memo field that can include instructions for automatic unwinding
  • Practical Impact:
    • Users can transfer assets to arbitrary destinations via Penumbra
    • Eliminates need for multiple manual hops
    • Makes cross-chain transfers more user-friendly
    • Enables integration with Skip protocol’s route optimization
  • Example Use Case: Assets issued on Noble, transferred through Osmosis, ending up on Penumbra can be unwound automatically
  1. App Version Safeguard (UIP-6 - Penumbra Improvement Proposals (UIPs), discussion here):
  • Context: During chain upgrades, validators must run migration scripts
  • Current Risk: Easy to accidentally run wrong version migrations against chain state
  • Solution Details:
    • Adds version checking between migration scripts and chain state
    • Prevents invalid state transitions
    • Saves significant operator time and prevents chain state corruption
    • Simple but effective safety mechanism

PRE-UIPs AND UPCOMING FEATURES:

  1. Staking Boost Proposal:
  • Current Challenge: Need better incentives for stake decentralization
  • Mechanism Details:
    • Takes portion of new issuance
    • Distributes to randomly chosen validator each epoch
    • Equal weighting regardless of stake size
    • Small validators have same chance as large ones for boost
  • Benefits:
    • Makes solo staking more economically viable
    • Promotes decentralization through economic incentives
    • Adds engaging element through randomization
    • Received positive initial validator feedback
  1. Transparent Address Solution:
  • Background: Addresses compatibility issues with other chains’ assumptions
  • Technical Implementation:
    • Each Penumbra wallet has many possible addresses
    • One address designated as “transparent address”
    • Still deposits into shielded pool
  • Design Philosophy:
    • Term “transparent” chosen deliberately to discourage casual use
    • More private than typical transparent addresses, so the terminological overloading is “safe” because users assuming it’s not private will get more privacy than they imagine
    • Intended as escape hatch, not primary feature
    • Allows workaround for issues like USDC bug while waiting for other chains to update
  1. Advanced DEX Interface Development:
  • Current Status: Significant front-end team progress
  • New Features:
    • Advanced trading interface with charts
    • Market and limit orders
    • Passive range liquidity provision
    • Enhanced backend with chain data indexing
  • Technical Architecture:
    • More sophisticated than original static front-end
    • Includes backend for better data handling
    • Remains open source and self-hostable
    • Development version potentially hosting at dex.penumbra.zone

Radiant Commons Updates

COMMUNITY AND INFRASTRUCTURE:

  1. Relay Program Development:
  • Current State:
    • Penumbra is connected to 6 chains
    • Informal Systems currently maintaining relaying infrastructure
    • Need for more redundant and decentralized approach
  • Requirements for Relayers:
    • Need consistent RPC access to both chains
    • Most run own nodes for reliability
    • Monitor for IBC transfers
    • Handle cross-chain transaction message-passing using specialized relayer software (Penumbra requires a fork of the Hermes relayer)
  • Program Development:
    • Being funded by Institute of Applied Numogrammatics
    • Gathering community feedback on incentives & interest- please contact Finch @ finch@starlingcyber.net or @starlingcyber in the Penumbra Discord
    • Focus on building redundant, reliable infrastructure
  1. Validator Opportunities:
  • Current Status:
    • 35 open validator slots
    • 100 UM requirement for validation
    • Community support available from Radiant Commons
  • Network Philosophy:
    • Focus on decentralized infrastructure from launch
    • Community-led front ends and RPCs
    • Low barrier to entry intentional
    • Documentation improvements ongoing, please forward issues with documentation to Radiant Commons (submit ticket in Discord) for triage
  1. Future Development:
  • Marketing and Community:
    • Working with marketing agency
    • Focusing on organic community growth
    • Improving social media presence
  • Infrastructure:
    • Potential collaboration with Nym on privacy solutions
      • VPN integration possibilities to give better network privacy to more Penumbra users
    • Continued focus on decentralization
  • Development:
    • Micro-grants program in development
    • Token factory module in discussion, which would permit real-world assets and fair launch tokens to be issued natively on Penumbra