Privacy Preserving DLT

Definition ∞ Privacy Preserving DLT refers to distributed ledger technologies designed to maintain the confidentiality of transaction details or participant identities while ensuring data integrity and verifiability. These systems utilize cryptographic techniques, such as zero-knowledge proofs or confidential transactions, to conceal sensitive information. They aim to balance transparency with the necessity for privacy in diverse applications.
Context ∞ The demand for Privacy Preserving DLT is increasing, particularly in enterprise and regulated blockchain applications where data confidentiality is paramount. Debates concern the trade-offs between privacy features and regulatory requirements for anti-money laundering and know-your-customer compliance. Future developments include more efficient cryptographic methods and broader adoption across various industry sectors.