Details of ERC-20 Framework Features
The Confidential ERC-20 Framework has four main features. These features will afford users more control over their financial information and expand the use of ERC-20 tokens. The first feature is an advanced privacy layer that keeps sensitive user data confidential during transactions. The second part is a set of tools for managing risks. These tools help organizations meet privacy rules and regulations, especially in strict markets.
Furthermore, the ERC-20 tokens will focus on creating various applications beyond traditional decentralized finance (DeFi). This includes private lending, decentralized voting, and other cases where privacy is important.
The final innovation is the key technology of the Confidential ERC-20 Framework. This framework uses Fully Homomorphic Encryption (FHE) on the Ethereum Virtual Machine (EVM) dApps. FHE allows calculations on encrypted data without decrypting it while keeping secure data throughout the process.
As Circle advances this proposal, the Confidential ERC-20 Framework could set new standards for privacy in Ethereum. This framework will support the next generation of applications focusing on decentralization and privacy.