Revolutionizing Blockchain Privacy with Encrypted Tokens and AvaCloud

Blockchain wasn’t built for privacy—but the next wave of institutional adoption demands it. From payroll to trading desks, organizations need confidentiality without giving up regulatory compliance or composability. That’s where AvaCloud’s new eERC token standard comes in.

Introduced in a recent episode of Avalanche Live, eERC is a breakthrough for developers and enterprises building private, auditable applications on Avalanche.

Listen to the full conversation here, or keep reading for more insight: https://open.spotify.com/episode/3I9BwddNRVm2FrXXj5ov97

From Transparency to Confidentiality

Built to enable encrypted token balances and transfers, eERC introduces a new level of privacy while preserving full auditability and EVM compatibility. It’s designed for enterprises, compliant with regulations, and easy to integrate—all without compromising Web3 principles.

“Blockchain systems have long lacked privacy,” explained Mehmet Ozturk, a lead developer behind eERC. “We’re solving that without sacrificing performance or compliance.”

This isn’t just theory—it’s already working, and it’s already changing how institutions think about blockchain.

Why Privacy Matters Now

AvaCloud Director of Product Will Waltrip underscored the timing:

“Institutions want to enter Web3, but they need privacy and compliance baked in,” he said. “eERC is lightweight, auditable, and compatible with the EVM. That unlocks entirely new use cases.”

Think payroll, internal treasury systems, confidential P2P transfers, even private in-game economies. Previously, these would’ve required custom privacy tooling, but AvaCloud now makes them accessible out of the box.

What Sets eERC Apart

Unlike older privacy tools that relied on heavy computation or limited functionality, eERC is built with real-world use in mind:

• Confidentiality: Balances and amounts are encrypted at the smart contract level.

• Auditability: Built-in auditor modules allow regulators and enterprises to decrypt as needed.

• Efficiency: It’s gas-light and scalable—no fully homomorphic encryption or external ZK systems required.

• Composability: Works seamlessly with existing wallets and SDKs, with no protocol changes.

Explore the full breakdown: https://www.avacloud.io/blog/avacloud-launches-encrypted-erc-token-standard

Powered by AvaCloud

None of this would be practical without infrastructure to support it. AvaCloud provides exactly that—an enterprise-ready platform for launching custom Avalanche L1s, now equipped with tools like eERC.

Before AvaCloud, institutions had to build and maintain privacy tech themselves. Now they can deploy in minutes with full compliance, liquidity access, and modular integrations ready to go.

What’s Next

eERC is just the beginning. The AvaCloud team hinted at a more advanced privacy layer coming soon—one that adds sender/receiver anonymity on top of confidentiality and auditability. Perfect for regulated payments, staffing, and treasury management.

As Waltrip teased, “This next version adds even more tools for real-world blockchain adoption. And it’s coming fast.”

Learn more and stay ahead of what’s coming next: https://www.avacloud.io/