Friends, hello! 👋 Yesterday we discussed the integration of Plasma with Bitcoin through a trust-minimized bridge (link to yesterday's post 👉 here; details from docs.plasma.to/bitcoin-bridge).
Today we will talk about a very relevant (check out this post if you have any doubts) topic — 🛡️confidential payments in Plasma: developing a system for concealing transaction details of USDT without changes to the EVM. All from official sources: [docs.plasma.to/stablecoin-native-contracts/confidential-payments].
What are confidential payments?
This is an option that hides the amount and recipient 🔒 in stablecoin transactions (like USDT), but maintains compatibility with DeFi and regulations. Plasma does not create a fully private network — it is a lightweight module that can be enabled at will.
Key Features (from documentation):
✅ Stealth addresses: Funds are sent to a one-time address created from the recipient's public key. Only they can detect and retrieve it — others cannot see the recipient.
✅ Encrypted memos: Additional data (e.g., notes) is encrypted — accessible only with the correct viewing key.
✅ Private ↔ public transfers: Easily switch from confidential payments to public ones (and vice versa) without new tokens or wrappers.
✅ Selective Disclosure: Users can provide verifiable proofs for auditing or compliance — optionally, under control.
How does it work technically (in simple terms):
🔹 EVM-compatible: Implemented with standard Solidity — no new commands or environments.
🔹 Modular and optional: Enable at the contract or wallet level; public transfers remain standard.
🔹 Composability: Works with DeFi (Aave, Uniswap) — confidential funds can be used in pools.
🔹 Regulatory Compliance: Auditability through proofs, without complete anonymity.
Current Status (from docs.plasma.to, November 2025):
📊 Active Research: Architecture in development — evaluating methods for generating stealth addresses, encryption, and proofs.
📊 Not finalized: Details may change; priority is practical privacy without complications.
📊 No timeline: Expect updates in the roadmap; the module does not affect the current network.
Why is this important for stablecoins?
💡 Payment Privacy: Global transfers (remittances) without disclosure of details — but with the possibility of verification for banks.
💡 Security: Reduces risks for users while maintaining network transparency.
🔥 Intrigue tomorrow: Overview of the Plasma roadmap — key milestones for 2026 focusing on scalability (from the official plan)! .
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