My friend has recently been managing an on-chain fund and is always frowning. After chatting, I learned the root cause — on a transparent blockchain, all transaction details can be seen by competitors. She wants to switch to a privacy chain to avoid risks but is worried about audit compliance issues. Later, I introduced her to a promising solution.

Think of the blockchain as a house. Traditional public chains are like buildings with glass walls; anyone passing by can see everything inside. This solution uses zero-knowledge proof technology to automatically coat the glass with a foggy film — outsiders can only see silhouettes, and cannot determine how much assets are involved or who is transacting. The validity of transactions can be verified, but the details remain completely hidden.

Even more cleverly, it has a "permission management" module. When regulators or internal auditors need to verify accounts, they use an authorized key, and the foggy glass can instantly become transparent in specific areas. Once the review is complete, the glass returns to its original state. This is called a selective disclosure feature, handled by the Hedger module. It protects business secrets from being targeted while satisfying compliance audit requirements.

Recently, this ecosystem launched a fully compatible virtual machine environment with Ethereum. Development teams can migrate seamlessly and deploy privacy-preserving and audit-friendly financial applications — such as private equity platforms and confidential voting systems — quickly and easily.

The entire network operates using its native tokens, which support its economic model. Imagine if more and more institutions choose to build their business here, the demand for tokens will naturally increase. Many financial institutions need both privacy protection and audit compliance — the potential in this sector is definitely worth exploring.