What Is the Advantage of Using a Hash Commitment over Full Contract Disclosure?

The main advantage is privacy combined with cryptographic proof. A hash commitment allows parties to prove that a specific contract or data existed at a certain time without revealing the sensitive terms to the public blockchain.

It provides a non-repudiable time-stamp and proof of integrity. If a dispute arises later, the full contract can be revealed, re-hashed, and compared to the on-chain commitment to verify its authenticity.