Why Institutions Are Turning to Avalanche: The Power of eERC-20s
Institutions aren’t flocking to Avalanche out of preference—they’re doing it because they have no real alternative.
The main reason? eERC-20s: Encrypted Balances on Public Blockchains
This is a game-changer, and here’s why:
Federal privacy laws and strict industry regulations make it nearly impossible for banks, healthcare providers, and other large organizations to use public blockchains—unless there’s a way to keep sensitive data private. Without privacy, important information like financial transactions or medical records would be exposed to anyone, risking major legal violations.
Enter eERC-20s.
These are special encrypted tokens on Avalanche that keep your balances and transactions confidential. Only the right people—like the account owner or authorized auditors—can see the details, while the public blockchain remains open and secure. This means institutions can comply with privacy laws while still benefiting from blockchain transparency and auditability.
But it’s not just for big players. Even everyday crypto users benefit. Hiding large balances shields you from scammers and market manipulators who might otherwise target you if they could see your holdings.
All of this is made possible by advanced zero-knowledge (ZK) technology, which ensures privacy without sacrificing security or compliance. With eERC-20s, Avalanche gives institutions and individuals an edge that most of the crypto world hasn’t even noticed yet.
