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Copy file name to clipboardExpand all lines: docs/build/apps/privacy.mdx
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title: Privacy on Stellar
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# Privacy on Stellar
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To support use cases like these, the Stellar community is building configurable, compliance-ready privacy tools. From low-level cryptographic host functions to managed private payment systems, these solutions help developers protect sensitive financial information while supporting regulatory compliance and enterprise requirements.
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## Privacy Pools
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Privacy Pools are smart contract-based systems that let users pay each other or interact with other protocols while optionally keeping their balances, transaction amounts, and addresses private on the public blockchain. Deposits and withdrawals into the pool are visible on-chain, but transactions between parties within the pool do not need to be.
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Nethermind's ZK team has built a proof-of-concept Privacy Pools implementation for Stellar using Circom circuits, Groth16 proofs, and Soroban smart contracts.
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:::caution Research prototype, not audited. Do not use in production with real assets. :::
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:::caution
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Research prototype, not audited. Do not use in production with real assets.
Confidential Tokens lets users keep token balances and transaction amounts private while keeping the sender and receiver's addresses publicly visible on-chain. Confidential tokens are designed for contexts where the parties to a transaction are known, but the amounts should not be.
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Confidential Tokens let users keep token balances and transaction amounts private while keeping the sender and receiver's addresses publicly visible on-chain. Confidential tokens are designed for contexts where the parties to a transaction are known, but the amounts should not be.
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This makes confidential tokens well-suited for payments where parties need confidentiality without sacrificing public auditability.
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An on-chain verifier is a Soroban contract that accepts a compact zero-knowledge proof and confirms its validity without re-running the original computation. These verifiers can be used to support zero-knowledge systems that protect privacy and ensure computational integrity. These verifiers build on the cryptographic host functions introduced in Stellar's Protocol 25/26 releases, making them efficient and affordable to run.
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A verifier for circuits built with Aztec's Noir language and Barretenberg backend.
**Poseidon / Poseidon2** ([CAP-0075](https://github.com/stellar/stellar-protocol/blob/master/core/cap-0075.md)) — hash functions designed for ZK circuits. Far more efficient inside proofs than SHA-256, used for commitments, Merkle trees, and nullifiers. Available as host functions, keeping hashing logic consistent between off-chain circuits and on-chain contracts.
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For full details and code examples: https://developers.stellar.org/docs/build/apps/zk
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Navigate to [this page](../apps/zk.mdx)For full details and code examples.
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