Five Blockchain Platforms Prioritizing Privacy Empowering Confidential Transactions

The arrival of private transactions on public blockchains has been a long time coming. While privacy technology has existed, it has always had limitations in terms of scalability and the types of assets it can support. Additionally, it has been hindered by a lack of compatibility across different chains, restricting its usage to single-chain solutions.

Fortunately, privacy technology has made significant progress, moving beyond the days of zero-knowledge privacy coins that served only one purpose. A new generation of protocols has emerged, enabling both consumers and enterprises to enjoy the benefits of blockchain without exposing sensitive data to the public. The following projects are leading the way in enabling confidential onchain transactions:

COTI: This digital payments network has transformed into an EVM L2 solution that solves the challenge of scalable blockchain privacy in a clever way. It utilizes Garbled Circuits, a technology that is 1,000 times faster and 250 times lighter than existing privacy solutions. This means it can handle high-volume payments and transactions without significant computational or cost burdens. Garbled Circuits rely on multi-party computation (MPC) to preserve private data, and a breakthrough by Dr. Avishay Yanai and his team at Soda Labs has made it more efficient than any other privacy solution on the market. COTI has retained its community and native token while implementing these privacy features on a new L2 platform.

Namada: Namada has achieved what many have sought for a long time: shielded multi-asset transactions. It allows for the private transfer of not only fungible tokens but also non-fungible tokens (NFTs) across different chains in the multi-chain ecosystem. Developed by Anoma Foundation, Namada’s modular shielding layer can be added to existing assets, blockchains, and decentralized applications. This means that protocols, which are typically public by default, can now offer optional privacy features that benefit all cross-chain users. Users have full control over which assets they want to share and which they want to keep private, ensuring confidentiality when using chains like Cosmos and Ethereum.

Fhenix: Fhenix is a Layer 2 blockchain that enables private transactions on Ethereum through Fully Homomorphic Encryption (FHE). FHE allows calculations to be performed on encrypted data without the need for decryption, opening up various innovative use cases. For example, machine learning models can be trained using encrypted datasets, overcoming data-sharing restrictions while fostering AI development. FHE also allows transaction data in the DeFi industry to be obfuscated and enables confidential voting and discreet proposals in public DAOs. Fhenix is championing the adoption of FHE and its potential to revolutionize blockchain privacy.

TEN: TEN aims to bring encryption to the Ethereum ecosystem, allowing EVM users to enjoy the advantages of private transactions. Developed by the team behind R3 Corda, TEN operates as a Layer 2 solution utilizing a unique Proof of Block Inclusion (POBI) protocol. It encrypts blockchain transactions using Secure Enclaves, which provide strong confidentiality guarantees. TEN supports smart contracts while maintaining decentralization and scalability through its L2 implementation using Confidential roll-ups. This allows TEN to retain the performance and simplicity of Optimistic roll-ups, while integrating much-needed privacy features seamlessly.

INTMAX: INTMAX is a Layer 2 zkRollup solution that utilizes stateless architecture to provide an efficient, secure, and scalable method for asset transfers. By leveraging statelessness, which means calculations and data preservation are done on the client side, INTMAX is one of the most efficient native Ethereum L2 solutions available. With just 5 bytes of on-chain information, INTMAX significantly reduces the computational and storage overhead typically associated with traditional blockchain systems. It achieves at least 100,000 transfers per second on Ethereum, with parallelization up to the number of users. INTMAX prioritizes bringing scalable private payments to the mass market, offering low transaction fees and strong decentralization.

Thanks to the efforts of projects like the ones mentioned above, onchain privacy is no longer impractical. Confidential transactions can now be conducted on various EVM chains without major trade-offs. As a result, users of web3 can engage in public transactions while keeping their financial data private.

Disclaimer: The content provided in this article should not be considered investment advice. Investing in cryptocurrencies involves risk, and capital is at risk.