> ## 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 assets vs traditional tokens

> Traditional tokens publish every balance and transfer; confidential assets encrypt them while staying verifiable and adding compliance hooks like selective disclosure. A side-by-side comparison.

Confidential assets and traditional tokens behave the same way functionally — both can be issued, transferred, and redeemed — but they differ on privacy. Traditional tokens (like standard ERC-20s) publish every balance and transfer in plaintext, while confidential assets encrypt those values onchain and use zero-knowledge proofs to keep them verifiable. Confidential assets also add compliance hooks, such as selective disclosure, that public tokens lack.

## Side-by-side comparison

| Dimension                  | Traditional token     | Confidential digital asset               |
| -------------------------- | --------------------- | ---------------------------------------- |
| Balances                   | Public, plaintext     | Encrypted onchain                        |
| Transaction amounts        | Public                | Encrypted                                |
| Counterparties             | Publicly linkable     | Not exposed                              |
| Verifiability              | Public read of state  | Zero-knowledge validity proofs           |
| Compliance / disclosure    | None built in         | Selective disclosure, scoped and logged  |
| Auditability               | Public to everyone    | Auditable by policy                      |
| Settlement                 | EVM chains            | EVM chains                               |
| Fit for regulated business | Weak — leaks activity | Strong — private by default, disclosable |

## Privacy

A traditional token's balances and transfers are readable by anyone. A confidential asset keeps them encrypted, so [public blockchain exposure](/docs/problems/public-blockchain-exposure) of treasury, counterparties, and flows is eliminated by default.

## Verifiability

Public tokens are verifiable because everyone can read the state. Confidential assets achieve verifiability differently: [zero-knowledge proofs](/docs/concepts/how-confidential-assets-work) confirm each transaction is valid without revealing the values.

## Compliance

Traditional tokens have no disclosure mechanism — visibility is all-or-nothing. Confidential assets add [selective disclosure](/docs/concepts/selective-disclosure), so issuers can prove specific activity to auditors and regulators on demand.

## Performance and tooling

Both settle on EVM-compatible chains. With Ryle, the additional cryptography (proof generation, verification, circuits) is managed by the platform and gas is sponsored by a relayer, so the integration surface stays close to a familiar token workflow.

## Related

* [What are confidential digital assets?](/docs/what-are-confidential-digital-assets)
* [How confidential assets work](/docs/concepts/how-confidential-assets-work)
* [Selective disclosure](/docs/concepts/selective-disclosure)
* [Confidential accounts explained](/docs/concepts/confidential-accounts)

## FAQ

<AccordionGroup>
  <Accordion title="Can I add confidentiality to a token I already issue?">
    Yes. Ryle supports a confidential layer on an asset you already issue, a brand-new confidential asset, or confidentiality on a third-party asset — all behind the same API.
  </Accordion>

  <Accordion title="Are confidential assets slower than traditional tokens?">
    They involve proof generation, but Ryle runs this in managed workers and sponsors gas via its relayer, so the operational experience stays close to a standard token integration.
  </Accordion>
</AccordionGroup>