Financial blockchain issues are often discussed: either open up completely and lose trade secrets, or hide tightly and face regulatory concerns. Is there a way to achieve both?

Technically, there is a solution. By combining zero-knowledge proofs with differential privacy, users can prove that a transaction is valid without revealing specific details. For example, in a loan approval scenario, one can prove that the applicant's credit score meets the threshold without exposing the actual score. Meanwhile, regulators hold the keys for backend audits—they can check at any time. This design is essentially the same as the EU GDPR's "data minimization" principle.

From a technical perspective, the verification speed of zero-knowledge proofs is in the millisecond range, much faster than Monero's ring signatures. Data shows that global financial data breaches cause an annual loss of $200 billion. Using this privacy solution can reduce the risk by over 90%.

There are many real-world cases. Last year, a leading DEX launched a privacy trading pool where users' transaction records are encrypted and stored securely, yet liquidity providers can still earn compliant returns. An institutional investor directly traded security tokens on the platform, with an average daily transaction volume exceeding $30 million, without triggering any regulatory alerts. This demonstrates that privacy and compliance can coexist, provided the technical design is appropriate.