Lava is expanding its application in the financial field to truly build the connection between PoC consensus and real-world assets.

Lava De-Fi Panorama

Confidential Asset scheme for STO

The Confidential Asset (CA for short) scheme is an extension of the Confidential Transaction scheme, which enables the issuance and transaction of Multi-assets on a single blockchain and perfectly hides asset information and transaction amounts. Bitcoin developer Gregory Maxwell first proposed the Bitcoin-based Confidential Transaction scheme, which makes it possible for UTXO Model to be constructed to hide transaction amounts and asset information without compromising Bitcoin's original security assumptions, traceability and verifiability.

Adopting the CA scheme, any UTXO-based blockchain is capable to issue, trade and manage multi-assets. Without introducing additional credit parties and cryptographic assumptions, CA’s homomorphic encryption selectively hides asset information and transaction amounts to enhance the privacy and fungibility for multi-assets issued on-chain.

More advantages of combining CA, Multi-assets and STO business on Lava

Reliability: CA is an on-chain multi-asset issuance and trading scheme based on the UTXO model. Without introducing new cryptographic assumptions, CA does not damage the original cryptographic strength. Lava is based on the Bitcoin Codebase and UTXO model, whose reliability has been fully satisfied by long-term test.

Privacy: CA gives excellent privacy to asset information and transaction amount, and this privacy is completely controllable and traceable. In contrast, Ethereum’s smart contracts shows no privacy, and the ZCash’s zkSNAKRS grants no traceability.

Fungibility: Fungibility makes assets on-chain more liquid, accepted and tradable by all. By comparison, both the 'colored coins' and the smart contract scheme destroy the fungibility, one of the most valued features required by an asset-issuing platform.

Consensus-backed: The effectiveness of the CA transaction requires endorsement by the consensus itself (i.e. the hashrate in PoW), making the security of a CA transaction no inferior to a native one. This is the fundamental difference from the ubiquitous “hash it and put onto the blockchain” scheme.

Why is Lava the best platform for STO business?