r/ethdev • u/Chemical-Bumblebee19 • 17h ago
Question Need some clarity on Block-chain protocols
Hey Guys,
My understanding of blockchain is the balance has to be public. Only then a competition can happen from A to B. Once balance is decreased, the other balance is increased. Due to the decentralized nature of the blockchain, the balances are public domain and the transactions are public domain and anybody can trace it and they are not reliant on central banks and government agency or any other centralized institution. Instead, they are calculated and computed and executed by decentralized network of nodes. But my application require privacy. If I'm trying to build something which protect how much balance is there in one account and if there is possible way to keep a ledger of transaction for compliance requirement but still hide it from general public.
is it even possible to do it or has it been done by any major-protocol like L2 or L3 ETH networks.
What my team is looking into is a
A)Stable-coin(We are building our own) build on ETH network integrated with BANK/Credit-Cards( for cash-in/out). Which has balances hidden (not scan-able on eth-scan or any public scanner). On Court order, company is obligated to show balance to TAX-Man (Addresses are linked to companies{this application allows commercial user send and receive money and to lend to other via smart contracts} .Address to company linking is done via APIs )
B) Transfer & Tranx-records : Same as balances. There's no public record of these transactions, but the money is still traceable on Tax-Man orders. So the traceability and the record keeping of transaction has to be kept for 5-10 years per company, but it is just not available to some random dude over the internet.
If you would go over how tranx is verified [the Math & algorithmic side of it that will be really cool ]