When traditional finance embraces blockchain, it often gets stuck on a multiple-choice question: public blockchains are sufficiently transparent, but business secrets are easily leaked; private chains protect privacy but are incompatible with open interoperability. Seeing this deadlock seemingly without a solution, a new approach has emerged—one project is using a "compliant privacy" concept to open a new door for financial institutions to get on the chain.

To be clear, privacy here does not mean anonymity. On the contrary, its core weapon is the Hedger protocol, tailored specifically for financial markets. This protocol leverages cutting-edge cryptographic technologies such as zero-knowledge proofs and fully homomorphic encryption to achieve a seemingly contradictory feat: protecting transaction details from disclosure while allowing auditors to verify their authenticity. This is called "selective disclosure"—the data to be made public is openly shared, while sensitive parts are encrypted. As a result, financial institutions no longer have to struggle between data transparency and business confidentiality.

From the underlying architecture, this project is positioned as a first-layer blockchain designed specifically for financial applications. It introduces the Confidential Secure Contract (XSC) standard, combined with the Rusk Virtual Machine—a ZK-VM built entirely on zero-knowledge cryptography—enabling developers to build truly privacy-preserving decentralized applications. Its modular design further allows complex institutional financial logic to run directly and compliantly on the chain, eliminating the need for convoluted workarounds.

In simple terms, this is about finding a path that can both get on the chain and keep business secrets safe.