Recently, I noticed a technical solution called Hedger. I looked through their documentation and feel that this might be the most interesting privacy solution currently available.

The core innovation sounds a bit counterintuitive—allowing smart contracts to protect business secrets while also being compliant with regulatory review. Sounds contradictory? But technically, it indeed solves the problem.

Here's a practical scenario. Suppose Bank A and Bank B want to trade derivatives on-chain. On traditional blockchains, all details are public, and competitors can see your strategy at a glance. With this solution, the transaction details are encrypted, and outsiders cannot see through them. But the clever part is—regulatory agencies can verify through a validation mechanism that both parties are qualified, the amounts are compliant, and no illegal operations are involved. Privacy and transparency coexist.

This is not just theoretical. Hedge funds are already using it. Their assets are managed on-chain, and their strategies and positions are business secrets that cannot be disclosed. But investors need to see compliance proof. Hedger happens to fill this gap.

I think the most noteworthy aspect of this technology is—it's not about fighting regulation but using technology to meet regulatory needs. The biggest concern for traditional financial institutions when going on-chain is compliance and data security. Many institutions want to embrace blockchain but fear data leaks or crossing regulatory lines. This solution provides a feasible technical answer.

Of course, such complex technology will inevitably face various practical issues when scaled up. But the direction is correct. If it can truly become widespread, it might redefine how financial institutions view blockchain.