Penumbra (UM)

Privacy and Security

Penumbra is a privacy-first blockchain that lets users transact, stake, swap, and market-make crypto assets without revealing personal information or transaction details. It uses advanced cryptography and zero-knowledge proofs to keep data private and secure, with privacy starting and ending on users' devices.

Cross-Chain Compatibility

Penumbra works with the Cosmos ecosystem and supports the Inter-Blockchain Communication (IBC) protocol. This allows users to shield and privately transact with any IBC-compatible crypto asset from different blockchains within a single shielded pool.

Decentralized Exchange (DEX)

Penumbra’s native decentralized exchange enables private trading with features like sealed-bid batch swaps and concentrated liquidity. This design protects trading strategies and prevents front-running by batching transactions and hiding individual trade details until finalized.

Staking and Governance

Users can stake tokens privately and participate in on-chain governance without exposing their stake amounts or voting choices publicly. Penumbra uses a unique mechanism to handle staking rewards while maintaining privacy.

Selective Disclosure

Users have control over what information they share and can selectively disclose transaction details to trusted parties for accounting or compliance purposes, maintaining privacy while allowing necessary transparency.

Usability Focus

Penumbra aims to balance strong privacy with ease of use, making cryptography invisible to users while protecting their financial data and strategies, similar to how secure messaging apps protect conversations.

Privacy and Security

Penumbra offers full end-to-end encryption, making it the first fully end-to-end encrypted blockchain. It allows private trading, staking, swapping, and market-making without exposing personal information or transaction details to the public. Privacy is maintained on users' devices through zero-knowledge proofs generated locally.

Cross-Chain and Ecosystem Integration

Penumbra connects with the Cosmos ecosystem via the Inter-Blockchain Communication (IBC) protocol. This enables private transfers of any IBC-compatible asset and creates a multi-asset shielded pool, supporting cross-chain private transactions.

Decentralized Exchange (DEX) Features

Penumbra’s native DEX supports secure and private trading for all users. Liquidity providers can set their own fees, and the system limits network data to essential transaction information, helping to optimize trade prices and protect trading strategies.

Proof-of-Stake and Governance

Penumbra integrates privacy with proof-of-stake through a private delegation mechanism. This allows staking derivatives, tax-efficient staking, and private on-chain governance voting, balancing privacy with participation in network consensus.

Innovation and Development

Penumbra has undergone multiple audits and continues to improve its cryptographic protocols and zero-knowledge circuits. It supports private concentrated liquidity and batch execution of shielded swaps, reducing risks like frontrunning.

Market and Funding

Founded in 2021, Penumbra has raised $4.75 million in seed funding. Its token (UM) is actively traded with a market cap in the millions, showing ongoing development and community interest.

Considerations

• Penumbra uses advanced cryptographic curves that prioritize privacy but may have larger proof sizes and some limitations compared to other cryptographic systems.
• Unlike many blockchains, Penumbra has no user accounts; only validators have identities used for commission spending.
• The platform is relatively new and evolving, focusing first on fixed functionality with plans to expand programmable features later.

Founders

Penumbra was founded in 2021 by Henry de Valence, who is also the CEO and a co-founder of Penumbra Labs.

Investors and Fundraising

Penumbra has completed one seed funding round, raising $4.75 million. This round was led by Dragonfly Capital and included a total of 9 investors such as Figment Capital and Lemniscap.

Investors in Penumbra

Penumbra has raised $4.75 million in a seed funding round completed on November 4, 2021. The round was led by Dragonfly Capital and included other strategic investors such as the Interchain Foundation, Lemniscap, Robot Ventures, Volt Capital, Figment, Strangelove Ventures, Informal Systems, and ZKValidator. In total, there were 9 investors involved in this round.

Halal Status of Penumbra

• Yes, Penumbra can be considered halal because it is a privacy-focused, decentralized exchange and blockchain network that does not inherently involve interest (riba), gambling (maysir), or prohibited activities.
• It operates as a proof-of-stake network with private transactions and governance, aligning with principles of transparency and ethical use.
• However, as with all cryptocurrencies, individual compliance depends on how it is used and the specific Islamic finance interpretations one follows.