Private State Transitions

Definition ∞ Private state transitions refer to changes in the internal state of a decentralized application or smart contract that remain concealed from public view on a blockchain. These operations use cryptographic techniques, such as zero-knowledge proofs, to verify the validity of a transaction without revealing its specific details. This preserves confidentiality for sensitive data while maintaining the integrity of the overall system. It enables privacy-preserving computations on public ledgers.
Context ∞ The ability to achieve private state transitions is a major focus for enhancing privacy in decentralized finance and enterprise blockchain applications. News frequently covers new protocols and cryptographic advancements aiming to enable confidential transactions and smart contract interactions. This development is crucial for increasing the utility of public blockchains for use cases requiring data discretion.