privacy protection

The urgent need of users for privacy protection is essentially an appeal for the reconstruction of the "digital financial trust system". In traditional finance, users rely on the credit endorsement of banks, payment institutions and other agencies, believing that they will abide by the privacy protection regulations; but in the decentralized DeFi ecology, the trust of intermediaries can only be based on "technology security". If the privacy protection technology is missing, users will lose their trust in DeFi due to "data streaking", and finally choose to exit the market. This lack of trust has become a key bottleneck restricting the large-scale development of DeFi: according to industry research, more than 40% of potential users refused to try DeFi services due to "fear of privacy leakage" in 2024; nearly 60% of users who have used DeFi said that they "will prefer agreements with privacy protection functions" and are willing to pay 5% -15% of the additional cost for privacy services. This data clearly shows that privacy protection is no longer a "differentiated selling point", but the "ticket" for DeFi products to enter the mainstream market. Financial services, with the function of privacy protection, will become the "first choice" of users and the "mainstream" of the market.