As large institutions flood into the blockchain ecosystem, privacy issues become more complex. The transparency of the chain was originally an advantage, but it also means that corporate trade secrets and investment trends can be fully exposed.

This creates a dilemma. Fully anonymous solutions (like Monero) seem ideal, but they cannot support KYC/AML processes, and regulators simply will not recognize them. Institutional investors don't actually need "complete invisibility"; what they want is selective privacy—certain information open to specific parties, while others are completely closed.

Zcash tried this approach by launching a hybrid model of transparent addresses and shielded addresses. The problem is that its disclosure logic is too coarse—either fully open or fully closed. In actual transactions, there are various participants, each needing to see different information, and this binary mode is obviously insufficient.

Canyon Network takes a different approach. It has already been adopted by institutional-level participants like DTCC. They use the Daml tool to finely split transaction information, then authorize different roles to view it as needed. This way, they can meet compliance requirements without delaying business processes. More importantly, they also leave an interface for themselves—seamlessly connecting with open Web3 markets.

The current trend is clear: privacy blockchains are no longer about hiding everything but are evolving toward "controlled disclosure." At least for the foreseeable future, this evolution will continue to deepen around the specific needs of institutional trading.