> ## 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.

# Confidentiality and data protection (GDPR) onchain

> Public blockchains conflict with data-protection law by publishing personal financial data permanently. Confidential digital assets keep that data encrypted by default, aligning onchain settlement with GDPR-style principles.

Confidential digital assets align onchain activity with data-protection principles because they keep personal and financial data encrypted by default rather than publishing it to a permanent, world-readable ledger. Public chains sit in tension with regimes like the GDPR — they broadcast balances and transaction relationships indefinitely, with no data minimization and no practical way to restrict access. Confidential assets invert that default: data is private unless an explicit, scoped, logged policy grants access.

## Why public chains strain data-protection law

Data-protection frameworks generally expect **data minimization, purpose limitation, access control, and accountability**. A transparent ledger violates the spirit of all four: every balance and transfer is published to everyone, forever, for any purpose, with no access control. Even pseudonymous addresses are routinely re-linked to real entities through [transaction-graph analysis](/docs/problems/public-blockchain-exposure), so "it's just an address" is not a sufficient safeguard.

## How confidential assets align with the principles

| Principle          | Public chain              | Confidential digital asset                                         |
| ------------------ | ------------------------- | ------------------------------------------------------------------ |
| Data minimization  | All data public           | Balances and amounts encrypted; only what policy grants is visible |
| Purpose limitation | Any observer, any purpose | Access scoped to a defined party and purpose via disclosure        |
| Access control     | None                      | Role- and policy-based; disclosures are scoped and time-bounded    |
| Accountability     | Not applicable            | Every privileged action and disclosure is logged                   |

## Access is a logged decision, not a default

With Ryle, visibility into confidential activity is always the result of a deliberate policy decision: a role, an asset configuration, or a specific [selective disclosure](/docs/concepts/selective-disclosure). There is no API or Console surface that returns end-user balances or transaction graphs ambiently. When access is granted, it is scoped, time-bounded, and recorded — which is the kind of demonstrable accountability data-protection regimes expect.

## What confidentiality does not do

Confidentiality is not a substitute for an issuer's own data-protection program. Ryle keeps onchain financial data private and access controlled, but obligations around lawful basis, data-subject rights, retention, and cross-border transfer of any off-chain personal data the issuer collects remain the issuer's responsibility. This page is educational, not legal advice.

## Related

* [Compliance overview](/docs/compliance/overview)
* [Regulatory frameworks](/docs/compliance/regulatory-frameworks)
* [Why public blockchains expose business activity](/docs/problems/public-blockchain-exposure)
* [Selective disclosure](/docs/concepts/selective-disclosure)
* [Confidential accounts](/docs/concepts/confidential-accounts)

## FAQ

<AccordionGroup>
  <Accordion title="Are public blockchains compatible with the GDPR?">
    They are in tension with it: a public ledger publishes personal financial data permanently with no minimization or access control, and pseudonymous addresses are often re-linked to real entities. Confidential assets keep that data encrypted by default, which aligns far better with data-protection principles.
  </Accordion>

  <Accordion title="Who can access confidential activity?">
    By default, no one but the holder. Any external visibility is the result of an explicit role, policy, or scoped selective disclosure — and every access is logged.
  </Accordion>

  <Accordion title="Does Ryle handle all of my data-protection obligations?">
    No. Ryle keeps onchain data private and access controlled, but the issuer remains responsible for its own program around lawful basis, data-subject rights, retention, and any off-chain personal data it collects.
  </Accordion>
</AccordionGroup>