The true path to mainstream adoption lies in privacy wallets that use cryptographic techniques like zk-SNARKs and stealth addresses. Zk-SNARKs (Zero-Knowledge Succinct Non-Interactive Arguments of Knowledge) allow one party to prove a statement (such as validating a transaction) without revealing the specifics of that statement. Instead of broadcasting every token movement, the blockchain only receives confirmation that the transaction follows the rules.

Meanwhile, stealth addresses help keep the sender and recipient’s identities hidden by creating ephemeral, single-use addresses for each transaction. This keeps the public blockchains’ liquidity and composability while protecting private information. Selective disclosure lets users give detailed transaction histories to relevant regulators or auditors without putting it all on a public record. This design resolves the tension between the demands of compliance and the rightful expectation of privacy.