PRIVACY 2.0: PETS AND THE PROMISE OF PRIVATE SHARED STATE

Summary from the TLDR Crypto newsletter

Privacy 1.0's isolated tools, like dark pools, limit composability due to the absence of private shared state, constraining broader adoption beyond niche users. Privacy 2.0's use of privacy enhancing technologies (PETs) – trusted execution environments (TEEs), multi-party computation (MPC), and fully homomorphic encryption (FHE) – to enable private, reusable data for collaborative computation, promises interoperable use cases like World ID's portable identity. Though current PET implementations face trust, efficiency, and standardization challenges, their advancement could unlock a new wave of privacy-driven blockchain innovation.