> ## Documentation Index
> Fetch the complete documentation index at: https://ryle.sh/docs/llms.txt
> Use this file to discover all available pages before exploring further.

# Confidential digital assets vs private / permissioned chains

> Private and permissioned chains hide data by walling off the network, sacrificing public-chain liquidity and reach. Confidential digital assets keep public-chain settlement while encrypting activity. A comparison.

Confidential digital assets and private (permissioned) blockchains both keep business activity off the public record, but they make opposite trade-offs. A private chain achieves privacy by **walling off the entire network** — only approved participants can see or join it — which sacrifices the liquidity, reach, interoperability, and neutrality of public networks. Confidential digital assets keep settlement on **public, EVM-compatible chains** and instead encrypt the sensitive values, so activity is private while the asset still lives on open infrastructure.

## Two ways to get privacy

* **Private chain:** move to a separate, permissioned network. Privacy comes from restricting *who is on the network*. You give up public liquidity and interoperability, and you take on the cost of running or trusting a closed network.
* **Confidential asset:** stay on a public chain, but encrypt balances and amounts and prove validity with [zero-knowledge proofs](/docs/concepts/how-confidential-assets-work). Privacy comes from *what is visible*, not from who is allowed in.

## Side-by-side comparison

| Dimension                          | Private / permissioned chain           | Confidential digital asset                                       |
| ---------------------------------- | -------------------------------------- | ---------------------------------------------------------------- |
| Where it settles                   | Closed, permissioned network           | Public EVM-compatible chains                                     |
| Source of privacy                  | Restricted network membership          | Encrypted state + ZK proofs                                      |
| Liquidity & interoperability       | Limited to the network                 | Public-chain reach                                               |
| Counterparty reach                 | Only network members                   | Anyone with a confidential account                               |
| Operational burden                 | Run/trust a network and its validators | Managed by the platform                                          |
| Disclosure to regulators           | Network-operator dependent             | [Selective disclosure](/docs/concepts/selective-disclosure) by policy |
| Neutrality / censorship resistance | Lower                                  | Public-chain properties                                          |

## When each makes sense

Private chains can suit fully closed consortia that never need public-chain liquidity or external counterparties. But for most enterprise use — [treasury](/docs/use-cases/treasury), [stablecoins](/docs/use-cases/stablecoins), [B2B settlement](/docs/use-cases/b2b-settlement), [tokenized assets](/docs/use-cases/tokenization-platforms) — the goal is the reach and settlement guarantees of public chains *without* the exposure. Confidential digital assets deliver that combination; private chains force a choice between privacy and reach.

## Related

* [Why enterprises need privacy onchain](/docs/problems/enterprise-privacy-onchain)
* [How confidential assets work](/docs/concepts/how-confidential-assets-work)
* [Confidential assets vs privacy coins](/docs/comparisons/confidential-assets-vs-privacy-coins)
* [What are confidential digital assets?](/docs/what-are-confidential-digital-assets)

## FAQ

<AccordionGroup>
  <Accordion title="Why not just use a private or permissioned chain?">
    Private chains sacrifice the reach, liquidity, and interoperability of public networks. Confidential digital assets keep public-chain settlement while making activity private and disclosable by policy.
  </Accordion>

  <Accordion title="Do confidential assets give up any privacy by staying on a public chain?">
    Balances and amounts are encrypted and counterparties are not exposed, so the sensitive data is protected. What you keep is the public chain's liquidity, neutrality, and reach.
  </Accordion>
</AccordionGroup>