2026-01-13 16:27:54

I recently came across an interesting project proposal. They are doing something that seems a bit contradictory—the implementation of a transaction method on-chain that both protects transaction privacy and allows regulatory authorities to conduct compliant audits.

The core idea uses zero-knowledge proofs combined with homomorphic encryption technology. When these two are integrated, it can achieve the effect of "transaction counterparts are invisible, but tax authorities can still verify" on the EVM. It sounds like copying the compliance logic of traditional finance, just moved onto the blockchain.

What's even more interesting is that this is not just theoretical. Their testnet is already up and running, and the alpha phase test network is operational. If they can successfully implement this solution, it will send a strong signal to institutional capital—because compliance issues have always been the key obstacle to institutional entry. At that point, the gates for institutions might really just crack open a little.

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StopLossMaster

· 13h ago

I have to say, this logic is quite interesting. Zero-knowledge proofs combined with homomorphic encryption seem to be trying to have the best of both worlds. However, the testnet is already running, which indicates it's not just a pure fantasy—this time, there might really be a chance. The key to institutional involvement is just this one piece, and compliance has always been the toughest barrier. If they can truly balance privacy and auditability, it could indeed change the game. Wait, on-chain transaction taxation and the ability to audit that feels like the most brilliant design. Privacy is good, but what institutions fear most is the risk of audit.

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RugPullSurvivor

· 13h ago

Wow, zero-knowledge proofs combined with homomorphic encryption? If this combo can really be implemented, institutions will definitely be convinced. Privacy and compliance, this pair of rivals, can finally reconcile.

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BuyHighSellLow

· 13h ago

Zero-knowledge proofs + homomorphic encryption, this combination sounds a bit advanced, but once it really gets implemented, organizations will have to adopt it.

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GateUser-afe07a92

· 13h ago

Zero-knowledge proofs combined with homomorphic encryption sound pretty amazing, but the key is whether they can truly be implemented in practice. If they can be done well, the barriers for institutions to enter will be significantly lowered, and compliance has always been the ceiling. Getting the testnet up and running shows the direction is correct, but how far is it from the mainnet? Let's wait and see. In simple terms, it's a balancing act between privacy and transparency. It sounds easy but is extremely difficult to implement. The fundamental issue preventing institutions from entering is regulatory uncertainty. Even if this project is perfect, it can't change the broader environment. This idea is interesting, but I'm more concerned about when it will be usable, rather than how impressive the technical architecture is. Privacy is privacy; if tax authorities can investigate it, that already determines its practical ceiling.

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OffchainOracle

· 13h ago

Wow, isn't this just trying to replicate the traditional financial logic of "I peek at your account but you can't see mine" on the blockchain? Zero-knowledge proofs combined with homomorphic encryption sound amazing, but if it really gets implemented, that would be incredible. If institutions actually get involved, then the regulatory crackdown will follow... In my opinion, that's the real key point.

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CrossChainMessenger

· 13h ago

If this thing really works, the institutions will be thrilled. Zero-knowledge proofs combined with homomorphic encryption sound like Russian nesting dolls, but if they can truly achieve the effect of "you can't see me, I can see,"... it’s definitely something. But wait, isn't this just trying to give compliance a privacy cloak? It seems easy for some people to find loopholes. Is Alpha testing underway? We need to see how it performs in practice—don't want another project that works fine in demos but crashes in production. The institutions are opening a crack... but whether that crack can really be opened is still unknown.

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RugDocScientist

· 13h ago

Zero-knowledge proofs combined with homomorphic encryption? Sounds impressive, but only if it can actually run in real-world applications. When it comes to institutional involvement, the key still depends on the implementation results; there are too many projects that are just talk on paper. If compliance auditing can truly be solved, it would indeed be a stepping stone for institutional funds, but the devil is in the details. Running a testnet does not equal product usability; let's wait until the mainnet launches. Can privacy and transparency truly be perfectly balanced? I'm a bit skeptical; there must be trade-offs. If this technology can really be used, regulatory authorities wouldn't resist either. Who wouldn't want a win-win situation?

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