# The ERC-7984 Standard

Confidential tokens implement the **ERC-7984** standard, developed by OpenZeppelin. This standard:

* defines how encrypted balances must behave
* ensures interoperable confidential transfers
* provides patterns for contract-to-contract interactions
* guarantees composability across the EVM ecosystem

**Official reference:** <https://docs.openzeppelin.com/confidential-contracts/token>

The ERC-7984 standard ensures that confidential tokens are composable, meaning they can interact with DeFi protocols, wallets, and other smart contracts just like regular ERC-20 tokens with the added benefit of privacy.

If you want to contribute, check the [Confidential Token Association](https://www.confidentialtoken.org/).


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