On-chain finance’s growth depends on what you can’t see

Initially, transparency was a strength of DeFi, but now it poses barriers to institutional engagement due to privacy concerns.

Surveys show over 50% of institutional investors see lack of transaction privacy as a key hurdle, highlighting the demand for private Layer 2 networks.

By leveraging technologies like zero-knowledge proofs, DeFi can provide privacy while ensuring compliance, forming a harmonious blend for future developments.