What Is a “Private Smart Contract” and Why Is It Needed?
A private smart contract executes logic and stores state on a blockchain without revealing the details of the computation to the public. It is needed for use cases where data confidentiality is paramount, such as proprietary trading strategies, private bidding in auctions, or managing sensitive business data.
ZKPs are a core technology enabling this by proving correct execution without revealing inputs.
Glossar
Data Confidentiality
Integrity ⎊ In the convergence of cryptocurrency, options trading, and financial derivatives, data confidentiality transcends mere privacy; it represents the bedrock of trust and operational resilience.
Private Smart Contract
Function ⎊ A private smart contract is a decentralized program that executes its internal logic and manages its state in a confidential manner, concealing the input data, computation steps, and output from all network participants except the authorized parties.
ZKPs
Cryptography ⎊ Zero-Knowledge Proofs are a class of advanced cryptographic protocols that enable a party to demonstrate the truth of a statement to a Verifier without disclosing the underlying secret information.
Proprietary Trading
Activity ⎊ Proprietary Trading involves a firm executing trades using its own capital, aiming to generate profit directly from market movements rather than collecting fees from client orders.
Encrypted Mempool Support
Mechanism ⎊ Encrypted mempool support involves submitting transactions in a cryptographically obscured format to prevent public viewing before block inclusion.
Smart Contract
Code ⎊ The contract is fundamentally self-executing code deployed on a distributed ledger, embodying the terms of the agreement in an immutable format.