privacy has always been a core web3 layer
and it keeps breaking in practice
this piece looks at how @fluidkey & @HoudiniSwap try to close that gap
here's what i'll cover:
→ where i think onchain privacy fails
→ fluidkey as the base layer
→ why houdini swap is needed
→ how hide trail actually works
→ supported paths & limits
→ what changes for the user
this setup relies on 2 components.
fluidkey as the wallet layer.
houdini swap as the routing layer.
they solve different parts of the same problem.
one handles address-level hygiene.
the other breaks transaction continuity.
only together does the model hold (dramatic mode on, ofc there are other ways available)
▫️ where onchain privacy fails
most users assume fresh addresses equal privacy.
that only works on receipt.
the moment funds move again, patterns re-form.
receive → send creates LINKAGE.
amounts, timing & destination collapse anonymity sets fast.
explorers do not need identity.
they only need graph consistency.
▫️ fluidkey as the base layer
fluidkey generates a new address for every transaction.
this already removes reuse.
it prevents obvious clustering.
but it does not erase history once funds leave.
a clean inbox does not guarantee a clean outbox.
so fluidkey solves surface privacy not trail deletion.
that gap is intentional.
it is where hide trail comes in.
▫️ why houdini swap is needed
houdini swap operates as a swap aggregator w/ a private mode.
i've wrote about $LOCK a while ago, check out what they do here:
https://t.co/7M1wSkmf1C
the key mechanism is routing.
funds do not move directly from sender to receiver.
they pass through 2 separate exchanges.
this splits observability.
no single hop sees the full path.
the link between original address & final address is removed.
execution is not instant.
the flow takes 5 to 30 minutes.
partner exchanges apply live AML monitoring during the process.
privacy is achieved through separation and not obfuscation.
▫️ how hide trail actually works
the action starts on an incoming transfer.
not a manual swap screen.
the user flow is minimal:
• open the incoming transaction
• tap activity details
• press hide trail
behind the interface, the path looks like:
• sending address
• exchange 1
• exchange 2
• receiving address
fluidkey wraps this w/ stealth addresses on both ends.
that means:
• origin is shielded
• destination is fresh
• middle hops are fragmented
the result is unlinkable endpoints onchain.
not hidden balances + broken continuity baby.
▫️ supported paths & limits
this feature is scoped by design.
it applies only to incoming transfers.
supported value range:
$60 to $100,000
supported chains:
• Ethereum
• Polygon
• Arbitrum
• Optimism
• Base
token availability varies per chain.
fees & final outputs can differ from previews.
▫️ what changes for the user
privacy stops being an advanced workflow.
remember, crypto doesn't automatically means privacy.
actually, it's very transparent.
2 taps introduce a deliberate break in the graph.
fluidkey handles address hygiene.
houdini swap handles path separation.
together, privacy is something you trigger.
enjoy privacy fam & follow @raares for more privacy insights.
