AvaCloud, a leading blockchain solutions provider, today announced the launch of eERC (Encrypted ERC), a groundbreaking privacy token protocol that brings confidential transactions to both permissioned and permissionless blockchains. eERC addresses the critical privacy challenges faced by enterprises and users seeking to leverage the benefits of public blockchain networks without compromising data confidentiality.

The new eERC standard offers the ability to issue ERC20 tokens with confidential transaction capabilities, making it one of the first compliance-focused token standards for the blockchain. Current token standards lack confidentiality of on-chain token transactions making them difficult to use in information-sensitive spaces like banking, government, healthcare and payment networks

Key Features and Benefits of eERC:

• Unparalleled Privacy: Hides token balances and transfer amounts for transaction confidentiality.

• Seamless EVM Compatibility: Deployable on existing Ethereum Virtual Machine (EVM) networks with high gas efficiency.

• Protocol-Layer Independence: Operates without requiring modifications to the underlying blockchain protocol.

• Regulatory Compliance: Includes an Auditability Module to enable selective decryption for authorized entities. 

• Enhanced Encryption Capabilities: Supports encryption of up to 254 bit integers, accommodating an exceptionally large number of tokens.

• High-Performance Encryption/Decryption: Delivers the fastest client-side encryption and decryption performance.

• Advanced Auditing Capabilities: Provides external auditors with designated, rotatable keys and asynchronous, off-chain auditing.

• Granular Privacy Control: Privacy preserving tokens can be supported alongside standard ERC20s, offering users the ability to support confidential transfers and public transactions workflows simultaneously.

• Versatile Implementation: Offered as both a standalone token, and a converter for existing ERC20 tokens.

• Wallet Agnostic: The SDK allows any end user wallet to utilize eERC.

• Lightweight Implementation: No additional hardware or compute resources are required to run eERC, ensuring minimal overhead and maximum cost efficiencies.

AvaCloud's Commitment to Privacy:

“eERC represents a major step forward in blockchain privacy," said Nicholas Mussallem, CEO of AvaCloud. "We are committed to providing solutions that empower users and enterprises to leverage the benefits of blockchain technology while maintaining the highest levels of data confidentiality. This will unlock novel use cases for blockchain, driving increased user adoption and ushering in a new era of secure, decentralized applications.”

While existing solutions address aspects of privacy or auditability, AvaCloud's eERC uniquely combines both. This compliance-focused approach provides robust confidentiality alongside full auditability, granting authorized parties access to information for regulatory purposes.

Technology Behind eERC:

eERC leverages advanced cryptographic techniques, including zero-knowledge proofs and homomorphic encryption, to enable confidential transfers. The Privacy SDK, developed in TypeScript, abstracts complex cryptographic operations, making eERC accessible to developers and end-users. 

Use Cases:

This new standard from AvaCloud addresses the difficulties in building and deploying privacy-focused applications. eERC is ideal for:

• Decentralized finance (DeFi) applications requiring privacy

• Enterprise collaborations involving sensitive data sharing

• Regulated financial institutions that need to balance privacy and compliance

• Tokenized Real World Asset (RWA) trading

• P2P payment applications

Availability:

eERC is available for AvaCloud L1 deployments and is accessible through the AvaCloud portal. For deployments on the Avalanche C-Chain or for more information, please contact sales@avacloud.io. Testnet usage incurs no additional fees.

Looking Ahead:

AvaCloud is also developing Avacy, a solution boasting not only transaction confidentiality but sender and receiver anonymity, further enhancing on-chain transaction privacy.

To learn more and explore the future of blockchain privacy with AvaCloud:

• Visit http://www.avacloud.io

• Contact AvaCloud at sales@avacloud.io

About AvaCloud

AvaCloud is a managed blockchain service empowering organizations to effortlessly build, deploy, and scale high-performance decentralized Layer one networks. AvaCloud provides a no-code platform, automated infrastructure, and comprehensive support, enabling businesses to focus on innovation without the complexities of blockchain management.