The past couple of weeks have been nothing short of interesting as PlatON uncovers the entirity of confidential token and I must say, following the thread has been mind blowing from what is confidential token to why confidential token?
Our last discussion was centered on parties involved in token confidentiality and incase you missed this, then catch up here @otemzi/platon-lately-thread-3-of-10
Today's writeup is a continuation of PlatON confidential token report and thread 4 focuses on the technical approach to token confidentiality.
Which reads,
Technical Research Report on Confidential Token Transfers — Part 4/10
Confidential token solutions should not be ranked only by "cryptographic strength."
They should be selected based on product requirements — everyday payments, strong anonymity, institutional data isolation, or complex private computation.
This episode maps the major technical approaches and where each one fits
The thread focuses on various approaches towards achieving token confidentiality which is based on actual usecase,
Account-based confidential balances, address in question is visible to all parties but balance and records becomes confidential, this becomes useful in Stablecoins, Institutional transfers, Exchange transfers, and so on.
Note / UTXO privacy pool, instead of keeping balance in account, notes are used to represents assets, and with cryptographic proofs, this further makes it more difficult to link new transaction to previous ones. This approach provides stronger privacy when compared to the previous, some examples include Aztec and PlatON DKSAP + Note.
The thread further goes on to explaining 4 different technical layers and their distinctive role and also Institutional data minimization, you can read it's entirety here PlatON confidential report
As usual, be sure to follow PlatON various socials medias if you still haven't and turn on notifications to get new and trending info as they come by.
