Data Privacy Layer

All compliance analysis occurs on abstracted state representations, meaning the AI never sees:

• Wallet addresses

• Balances

• Sender/receiver identity

• Transaction history

🔐 Methods Used

Method	Purpose
Hash-Based State Trees	Removes user identity from network state
Zero-Knowledge Range Proofs	Validate collateral values privately
Encrypted Ledger Observations	Prevents metadata leakage

🧼 What AI Sees

• “Account A transferred X to Account B” is not visible

• AI receives:

Node_3 → Node_9 (value class: medium)

🌫️ Privacy Guarantee

Even if the compliance system were compromised:

There is no personal data to leak.