In the highly competitive RWA (Real World Assets) track this year, some projects are beginning to explore a differentiated approach called "compliant privacy." Unlike most privacy-focused public blockchains that pursue complete anonymity, some teams are considering how to protect user privacy while meeting global audit requirements. Finding this balance is actually quite challenging.

**Innovative Directions in Technical Foundations**

Core competitiveness is reflected in the design of the virtual machine. Many projects use a general-purpose EVM, but Piecrust virtual machine takes a different path—optimized at the instruction level for zero-knowledge proofs (ZKP). The benefits of this approach are obvious: faster processing of complex compliance logic and reduced Gas consumption.

Through the Zedger protocol mechanism, this type of solution achieves an interesting balance: asset ownership can be privacy-preserving, yet the audit trail remains fully traceable. In other words, institutions can perform KYC/AML audits with a single click while protecting customer trade secrets. This provides a practical solution to the compliance bottleneck for on-chain financial assets.

**Implementation Ideas for Financial Applications**

The most exciting aspect is the design of identity protocols. Users can generate a "privacy pass" to complete interaction verification without revealing underlying identity information. This is not just a concept but a real-world demonstration in actual activities, showing the potential for transitioning from theory to application.