Is compliance really the endgame for blockchain financial applications? Many people's answer is yes.

Since 2018, there has been a project exploring this question—using a modular Layer 1 infrastructure architecture to allow the same system to flexibly adapt to different regulatory standards worldwide. The brilliance of this approach is treating compliance not as a patch after the fact, but as an integral part of the protocol design.

Recently, they introduced a solution that is quite interesting: combining zero-knowledge proofs and homomorphic encryption to achieve bidirectional guarantees for privacy transactions and compliance auditing on EVM-compatible chains. The key is that no additional plugin modifications are needed; the transactions themselves inherently support these features, directly meeting the regulatory requirements of most countries.

What does this mean? It means developers can directly build financial products on-chain that protect user privacy while satisfying regulatory scrutiny, without having to make painful compromises between the two. From a technical perspective, this model indeed opens a new door for the compliance process of blockchain.