# The Zaïffer privacy system

## Why Privacy Matters in Blockchain Finance

Blockchain transparency is a powerful feature, but it directly conflicts with the confidentiality expected in modern financial systems.

**Today, anyone can analyse:**

<table data-header-hidden data-full-width="true"><thead><tr><th></th><th></th><th></th></tr></thead><tbody><tr><td>wallet balance</td><td>transaction amounts</td><td>swap sizes</td></tr><tr><td>treasury movements</td><td>business relationships</td><td>yield allocations</td></tr></tbody></table>

This creates problems for all types of users:

<table data-full-width="true"><thead><tr><th>For institutions:</th><th>For Individuals:</th><th>For regulators:</th></tr></thead><tbody><tr><td>Competitors can track strategies</td><td>Wallets expose full financial history</td><td>Lack of privacy discourages regulated entities from adopting on-chain finance</td></tr><tr><td>Treasury movements become predictable</td><td>ENS names leak net worth</td><td>Traditional audit models cannot function when sensitive data is globally visible</td></tr><tr><td>Market actors can manipulate or front-run operations</td><td>Spending and income patterns become public</td><td></td></tr><tr><td>High-value wallets become security targets</td><td></td><td></td></tr></tbody></table>

Zaïffer reconciles transparency and privacy by encrypting **amounts** while leaving **addresses** visible, enabling compliance, sanctions screening, and auditability.

## Why Zama’s technology?

Zaïffer integrates the FHE technology developed by [Zama](https://www.zama.ai/), a leader in applied homomorphic encryption. Zama’s network provides the off-chain computation layer, analogous to how Chainlink provides data oracles. Computations requested by Zaïffer’s smart contracts are processed by a decentralised set of Zama nodes, ensuring no single operator can compromise security.

Performance today achieves confidential transfers in approximately 10 to 15 seconds per operation. This balance between strong encryption and practical usability makes Zama’s FHE uniquely suited for live blockchain applications.

This design ensures that encryption, computation, and verification remain decentralised and verifiable, without reliance on any trusted intermediary.<br>


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