In the early hours of 2026, I turned off the trading screens flashing with frantic data and reprinted a technical document on privacy contracts. After spending so much time in this circle, one feeling has become increasingly profound: we’ve been constantly seeking security, but most projects only offer illusory liquidity.

Recently, I’ve been pondering a question repeatedly: what exactly is RWA lacking?

Honestly, turning property titles or bonds into tokens is technically quite simple—so simple that it’s almost pitiful. But now I am increasingly convinced that the real barrier lies in "how to achieve privacy settlement of these assets in a fully decentralized environment." I’ve spent a lot of time studying the principles of the Phoenix protocol and gradually realized that this might be the most feasible solution—enabling compliant funds to migrate smoothly onto the blockchain without harming commercial interests.

Looking at it from another angle: if I were the technical lead of a large asset management firm, what would I fear the most?

It would be that every hedge, every rebalancing is fully visible to the world. This kind of "full transparency" is fair to retail investors, but it’s a disaster for professional traders. The global visibility on public blockchains is equivalent to putting your trading strategies and risk exposures on display in the street. Then, consider the design logic of privacy contracts—combining zero-knowledge proofs with confidential states—this becomes especially necessary. It’s not just about stacking technology; it’s about understanding the essence of finance—finance is fundamentally a "protected information game."

Sometimes I also ask myself: is this obsession with technical details too detached from the market? In an era where traffic is king, such foundational infrastructure indeed seems somewhat out of place. But one voice has always been clear in my mind: if blockchain is truly to reshape traditional finance, its foundation must be privacy. A financial network without privacy is like a battlefield without defenses—no matter how fast you run, it’s useless. When faced with real professional players, you’ll be defeated instantly.