Privacy tracks have recently gained quiet momentum. Many are still focused on traditional privacy coin solutions, unaware that some projects have already completed their mainnet final sprint earlier this year.

To put it simply, traditional blockchains are like transparent safes—institutions want to put assets inside but are naturally repelled by open ledgers, fearing their cards and chips being seen through. These concerns directly block large capital from entering.

The real breakthrough lies in building a bridge between privacy and auditability. Some projects use zero-knowledge proof technologies (such as ZK-SNARKs, PLONK, etc.) to make transaction data appear as gibberish to the public, while remaining crystal clear from a regulatory perspective. This "compliant privacy" design has already attracted the attention of mainstream institutions—such as organizations like the Dutch Stock Exchange, which has directly put hundreds of millions of euros worth of securities assets on the chain.

Its role is not just as a Layer 1 protocol but more like a surgical knife swinging between compliance and decentralization, forcibly cutting through the deadlock of both. While the market is still discussing Ethereum's fragmentation issues, these types of projects have already achieved second-level clearing and settlement efficiency through innovative consensus mechanisms. For the competition of bringing real assets on-chain, compliance is the most solid key to opening institutional doors.