Thread 5 marks 50% completion of PlatON confidential token report as it breaks down 1 of the major technical approach towards achieving token confidentiality.
Thread 4 as we discussed previously was centered on the various technical approaches involved in token confidentiality, and with the introduction of thread 5 and other subsequent thread that follow, each approach will be examined in greater depth and today's technical approach is Zama fhEVM.
Zama fhEVM is a combination of FHE, EVM compatibility, and confidential token standards. This creates a frame that retain the similarity we are all familiar with (Erc20) instead of redesigning the entire asset model.
How It Works
At a high level, the workflow remains familiar.
Users encrypt transaction amounts before submitting them to the contract.
fhEVM enables smart contracts to perform addition, subtraction, comparison, and permission checks directly over ciphertexts.
Decryption is controlled through a KMS or authorized institutions, rather than being publicly accessible by default.
ERC-7984 proposes a standardized interface for confidential balances and confidential transfers, bringing a familiar ERC-20 user experience to confidential tokens. PlatON
The thread further goes on focusing on how fhEVM carries it technicality towards achieving it goal of token confidentiality, in short, an entire backlog of data that isn't presented to users but rather the entire product once completed.
In summary, Zama fhEVM approach is carried out due to its unique similarity with EVM and Solidity development experiences, confidential transfers and balances, and so much more.
As usual, you can read the entirity of thread 5 here PlatON confidential token report
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