Privacy-Focused Protocol, Elusiv, Raises $3.5 Million Led by LongHash Ventures

InfoNesia.xyz – Elusiv has successfully raised $3.5 million via its seed funding round co-led by LongHash Ventures and Staking Facilities Ventures. Elusiv will use the raised capital to build its development team, fund security audits, and make its privacy solutions interoperable with multiple blockchains.

Elusiv Secures $3.5 Million in Funding

Elusiv, a regulatory-compliant Zero-Knowledge proof-based privacy protocol that enables users to privately send and receive money on-chain, has successfully secured $3.5 million via a seed funding round led by LongHash Ventures, and Staking Facilities Ventures.

Elusiv says its primary objective is to become the backbone of the Web3 financial ecosystem by providing both regular individuals and institutions with transactional privacy, while still maintaining absolute safety through low-trade-off compliance solutions.

By default, all transactions on the Elusiv platform are private. However, users have the freedom to specify which transactions to make public.

Elusiv plans to use the raised capital to build out its development team, pay for security audits, and extend its solution to multiple blockchain networks.

Commenting on its successful seed funding round, Yannik Schrade, co-founder of Elusiv said:

“Financial privacy is a requirement for individual freedom. However, advancing the adoption and acceptance of privacy-preserving tech also requires capable compliance. ZK and new decentralized technologies allow us to overcome the notion that privacy and compliance are exclusive and instead enable us to form a new kind of symbiosis between privacy and compliance.”

Other notable investors that participated in Elusiv’s latest funding round include Jump Crypto, NGC Ventures, Big Brain Holdings, Anagram, Cogitent Ventures, Equilibrium, Marin ventures, Token Ventures, Moonrock Capital, Monke Ventures, SolanaFM, as well as the founders of Solana, Zeta, Notify, Solflare, and UXD Protocol.

The Elusiv Advantage

The team says the Elusiv platform comes with full composability, making it possible for the solution to be integrated into wallets and blockchain protocols. Unlike other solutions, Elusiv maintains the privacy of users even if only one party uses it during a transaction. For example, if user A wants to send money privately to user B, the recipient, user B, does not necessarily need to use Elusiv for the payment to be private.

At a time when regulators around the globe are increasingly pointing their searchlights into privacy-preserving tokens, and mixers, Elusiv says it has invented several compliance systems, including Zero-Knowledge proofs and advanced cryptography, to ensure its platform remains regulatory compliant.

Explaining how its compliant privacy solution works, Elusiv said:

“On the Basic level, Elusiv allows users to give third parties insight into their private transactions and assets by either sharing individual transaction viewing keys or by appointing so-called trusted third parties (TTPs) to view all transactions. Users can additionally prove to third parties that their transactions have not been sent, for example, by a known malicious actor, all with one or two button clicks.”

That’s not all, Elusiv’s advanced compliance system also uses a decentralized network of trusted execution environments (TEEs) to achieve a consensus over bad actors. While the system does not have the capacity to seize the funds of these malicious actors, they, however, cannot utilize the privacy feature of Elusiv and this makes the solution unattractive to criminals.

Wei Shi Khai, LongHash Ventures’ General Partner, and Chief Operations Officer said:

“Privacy is a human right worth protecting, and has been a persistent pain point in Web3. We at LongHash Ventures are excited by Elusiv’s strong position to address this space with their user-friendly and scalable integrations while maintaining a practical approach to compliance. Moving forward, we see privacy as a key modular layer in our multi-chain infrastructure thesis, especially as more social and identity use cases mature.”

Going forward, Elusive plans to introduce “Elusive Virtual Machines” to let developers use Zero-Knowledge Proofs for their applications without bothering about the complex cryptography involved. Essentially, through Elusiv, blockchain devs will be able to bring to life their own ZK-supported solutions with less cost and development time.