**Privacy and Scaling: Two Paths Forward**

Zero-knowledge proofs shine when you need to scale without compromising on verification. They're the backbone behind ZK-rollups, which crunch transactions on Layer 2 while proving everything checks out to the main chain—all without exposing the raw data. Perfect for proving a computation happened correctly, no takebacks.

Full homomorphic encryption takes privacy to another level. Imagine smart contracts that run on encrypted data—balances, trade orders, voting preferences all stay hidden until the results are revealed. Private DeFi gets real when users can interact without exposing their positions. Sealed-bid auctions, confidential voting systems, the applications multiply once you can compute on encrypted information without decrypting it first.

Two different tools for two different problems. One optimizes for throughput and proof elegance. The other prioritizes absolute confidentiality.