The large-scale application of on-chain finance has actually been hinted at for a while—Polygon has already reached a threshold in the payment field. But to truly unlock this market, a problem that cannot be bypassed is now in front of us: how to protect transaction privacy while complying with regulatory requirements?

This is not optional; it must be done. The protocol needs to find a balance between the two—ensuring user transaction privacy on one side and meeting regulatory compliance on the other. This is the key to whether DeFi can reach the mainstream. Polygon's exploration in this direction, to some extent, represents the industry's overall thinking. Compliance and privacy capabilities will become standard features of the next-generation on-chain financial infrastructure.