The functionality of ordinary privacy coins is actually so simple—hiding the parties involved in the transfer and the amount. But is that really enough?

There’s a project that thinks more deeply in this area: it has launched confidential smart contracts that allow developers to write complex business logic, with the key being flexible control—what data is public and what data is encrypted. This is completely a different level.

Think about what this is useful for. For example, decentralized dark pools, where institutions want to place large orders on-chain, are most afraid of being sniffed out by high-frequency bots from the mempool and "front-running." This solution solves that—when trades don’t match, they simply don’t go on-chain; only successful transactions are confirmed, leaving bots no chance to cause trouble.

Another example is the blind auction system. Before the auction ends, all bids are sealed, which completely cuts off the possibility of collusion, making the bidding process more genuine.

What is the core technology? It’s their self-developed Piecrust virtual machine, which divides the contract state into "public" and "private" parts. This way, DApps can use blockchain consensus for settlement while protecting private data like a centralized server. It sounds contradictory, but the architecture makes it a reality.

This hybrid approach is actually the optimal route for running complex commercial applications on blockchain today. Some say it’s an RWA issuance platform, but its positioning is even broader—it’s an operating system supporting business privacy computing. It breaks the contradiction between "transparency" and "confidentiality," enabling blockchain to truly serve the complex needs of the real economy. From an investment perspective, understanding the value of confidential smart contracts is key to grasping this project’s niche in the Web3 second half.