Thread👇 Chainlink just permanently one shot the privacy meta by building the forever end game privacy solution. How? Chainlink just made every token a private token. Every end to end workflow (across onchain and offchain) a privacy workflow. Every application is a privacy application. Every chain is now a private chain. Privacy is paramount. However, what people want is to have the desirable assets they already own to be privacy-enhanced rather than just owning arbitrary assets because they happen to be private. Every asset should have privacy. Every transaction should be private. Every contract should be private. Every end to end workflow should be private. Now, we do.

Thus far *every* other chain, protocol, or token has only built an incomplete solution. "This token is private on its own chain, but you can't do anything else with it" "This chain is privacy enabled, but the cross-chain transaction coming off of it is not" "This contract is private onchain but then the other half of the offchain transaction is exposed." "This confidentiality design can hide the amount of a token being sent, but it can't hide the token type nor the addresses of the senders and receipients"

More info on Chainlink Runtime Environment as an orchestration layer.

Chainlink Confidential Compute unlocks a new class of private smart contracts that connect to real-world financial data and Web2 systems and interoperate across blockchains while keeping proprietary data, business logic, external connectivity, and computation fully confidential. This unlocks new, previously impossible onchain use cases for institutions, such as: Private Transactions: Enable onchain value exchange with confidentiality, concealing key transaction details so transactions and market positions remain confidential. Privacy-Preserving Tokenization (RWAs): Bring new types of institutional real-world assets (RWAs) onchain, such as tokenized bonds, private credit pools, and fund allocations, without exposing investor information, deal sizes, or pricing terms. Confidential Data Distribution: Monetize and securely distribute your proprietary data onchain, such as benchmark indices, reference rates, and valuations, to approved subscribers only in a privacy-preserving manner, while also giving smart contracts the capacity to perform operations without revealing underlying data. Privacy-Preserving Cross-Chain Interoperability: Execute transactions across public and private blockchains without revealing key transaction data to Chainlink node operators or other third parties, enabling use cases like Delivery vs. Payment (DvP) settlement where tokenized assets and stablecoins/CBDCs exist on different chains. Privacy-Preserving Identity and Compliance: Prove compliance and verify identities using existing identity providers and APIs without revealing underlying personal or institutional data onchain or to the nodes themselves.

Furthermore, it's one achievement to just obscure visibility into transactions. However, there's another key element which is a big unlock: Veriability. Every confidential workflow executed in Chainlink Confidential Compute generates cryptographic attestations of the processed data and executed logic without revealing the data or logic itself. These cryptographic attestations can include additional workflow-specified data for enhanced auditability and verifiability. The additional workflow-specified data can be encrypted to designated parties, such as an auditor or regulator, ensuring strict need-to-know access. This creates blockchain-grade verifiability for private CRE workflows, enabling users to verify what was executed, when, and under what workflow, without revealing sensitive data or logic.

Because you have these properties of end to end privacy *with* verifability you can now build a new class of *PRIVATE* Smart Contracts: Onchain smart contracts across any blockchain: They enable private smart contracts to access onchain liquidity, permissionlessly integrate with the DeFi ecosystem in a fully composable manner, and accept arbitrary onchain requests. Chainlink Confidential Compute: This is the key technological innovation unlocking the creation of private smart contracts through decentralized secrets management, confidential and verifiable workflow execution, and confidential connectivity. Offchain data: Private smart contracts can securely connect to any offchain source of truth—including market data, reference rates, KYC/AML databases, internal enterprise systems, and authenticated APIs. Using Confidential Compute and the Vault DON, credentials and data access permissions remain private, ensuring that even sensitive or permissioned information can be used securely onchain. This enables use cases, such as triggering API-based payments, fetching proprietary benchmarks for tokenized assets, validating identities, or reconciling transactions, all without exposing data or credentials to any third party.