core-concepts:protocols

Confidential smart contracts use a two-state model, separating public state from private data. Protocols like Kachina leverage zero-knowledge proofs to execute computations on-chain while keeping private inputs shielded.

The Zswap protocol provides shielded token transfers and atomic swaps by using zero-knowledge proofs for balance verification. This ensures transaction privacy while cryptographically guaranteeing that token balances remain valid.

Kachina handles general-purpose private smart contract execution, while Zswap manages shielded token transfers and atomic swaps. Together they enable DeFi use cases like private balances and confidential asset issuance.

Zero-knowledge proofs verify private computations without exposing data, and Merkle proofs establish private state membership within the two-state model. Both are required when integrating shielded contract logic.

Yes, the Zswap protocol enables atomic swaps with privacy guarantees. It uses zero-knowledge proofs to verify balances cryptographically without revealing transaction details or participant identities.

Token issuance requires integrating with the two-state model to manage public and private states, using Zswap for shielded transfers and Kachina for contract logic. Developers must handle Merkle proofs and ZK proof generation.