Institutions need privacy, done right.
What does this look like? Here are two big ways Avalanche offers privacy.
Private Avalanche L1s
Encrypted ERCs (eERCs)
Private Avalanche L1s: These are L1s that employ a restricted, permissioned validator set, hiding data from the public.
These are extremely popular among institutions and enterprises who may require privacy for regulatory reasons as well as customer confidentiality.
Two great examples of this are
@Intain and Toyota Blockchain Group’s whitepaper for their MON blockchain.
Intain leverages privacy on their Avalanche L1 to process sensitive financial data such as borrower identities, loan details, and asset valuations, ensuring compliance with regulatory requirements like KYC and AML while preventing unauthorized access or data exposure in a multi-trillion-dollar market.
Toyota needs privacy in its blockchain PoC to securely handle sensitive vehicle data, including ownership records, usage histories, insurance details, and carbon credits, while complying with global regulations on data protection and vehicle safety to prevent fraud and enable trusted cross-border mobility.
Private Avalanche L1s continue to be in high demand.
But Avalanche even offers privacy on public chains.
Encrypted ERCs (eERCs): a protocol that allows secure and confidential token transfers on Avalanche blockchains.
Launched in March 2025 by
@AvaCloud, the eERC protocol offers privacy without requiring protocol-level modifications or off-chain intermediaries. We’ve quickly seen the Avalanche community build and iterate on this protocol.
Privacy on Avalanche can enable:
• Anti-frontrunning in swaps
• Wallet tracking prevention
• Private, trustless legal agreements
• Cross boarder payroll
• Healthcare applications
• Private prediction markets
• Supply Chain integrations
...and more.
Businesses typically have to make tradeoffs for every decision. But within Avalanche they don’t need to compromise when it comes to privacy.
Built for privacy🔺