Confidential Transactions are live on @Aptos devnet! ✅ Keep confidential amounts & balances on-chain ✅ Ensure auditability We’re empowering regulated financial & enterprise-grade use-cases to adopt blockchain tech with compliant confidentiality 🧵 →

2/ Many regulated and enterprise-grade use-cases demand confidentiality, but public blockchains are transparent by design. Aptos Confidential Transactions (ACTs) bridge this gap, letting developers build with confidentiality on balances/transfers, while having the tools to meet their regulatory obligations.

3/ An integral part of the Aptos Global Trading Engine, ACTs unlock real world use cases. We envision: • Confidential Payroll: Disburse salaries on-chain without exposing individual amounts • On-chain RSUs: Manage equity grants without revealing allocation sizes • Privacy-enhanced DeFi: Any application where confidentiality matters

4/ How & What ACTs Do 💪 Encrypt token balances and transfer amounts under a long-term encryption key, so only the sender, recipient and any designated auditors can see numeric values. An additively-homomorphic encryption scheme lets the chain add or subtract encrypted values directly. No decryption needed for on-chain arithmetic. Zero-Knowledge Proofs (ZKPs) make sure that “encrypted transfer ≤ encrypted balance” without revealing either figure to ensure no negative balances or hidden inflation.

5/ Confidential TXN Lifecycle 🔒 • Each user has an assigned keypair (ek, dk) for encryption/decryption • Alice wraps amount ‘v’ under ek_Alice & ek_Bob with randomness r • Alice creates ZKP π providing that v is correctly encrypted, the amount is in range, and her post-spend balance ≥ 0 • Validators check π, then homomorphically update encrypted balances • Bob uses dk_Bob to reveal v

6/ Auditor Integration 🔍 ACTs can also encrypt each transfer under an auditor’s key. Senders supply an extra ZKP tying auditor and recipient ciphertexts to the same amount, so auditors see what they need to.

7/ State Management Under the Hood ⚙️ • Pending Balance: Holds incoming confidential transfers to prevent front-running • Actual Balance: The spendable encrypted balance • Frozen Flag: Temporarily halts incoming transfers for secure key rotations

Learn more about Confidential Transactions on @Aptos. Send & receive confidential transactions today ⤵️