> For the complete documentation index, see [llms.txt](https://docs.blanksquare.io/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.blanksquare.io/key-concepts/fixing-privacy-in-web3.md). # Fixing Privacy in web3 The foundational features of blockchain are its support for self-custody and permissionless access. Users can directly hold and transfer assets without relying on centralized intermediaries, and anyone can interact with the network without prior approval. These properties represent a significant shift from traditional financial systems, where access and custody are often tightly controlled by centralized parties. \ Another feature of blockchain, a consequence of how these systems are constructed, is transparency. Unlike traditional finance, where much of the system operates behind closed doors, blockchain makes all activity visible and verifiable. This is a good property overall because it lets anyone audit the system—whether it's checking that no one is printing extra tokens or verifying that a smart contract is behaving as expected. But this transparency also comes with a critical drawback: the lack of privacy. All transaction data, including sender and recipient addresses, amounts, and smart contract interactions, is publicly visible and permanently recorded on the ledger. While pseudonymous, this data can be linked to real-world identities through heuristic analysis or data leakage elsewhere, leading to deanonymization. In practice, this level of transparency results in a privacy landscape that is significantly worse than in conventional financial systems, where at least some degree of confidentiality is preserved through institutional practices and legal protections. On public blockchains, every financial interaction is exposed by default, creating risks for individual users and businesses alike. This privacy deficit presents a major barrier to broader adoption. While scalability, throughput, and user experience are commonly discussed limitations, the inability to preserve financial privacy may prove to be the more fundamental obstacle. No amount of technical scaling will address the reluctance of users to adopt a system that exposes their financial behavior to the public. As such, a working privacy-enabling mechanism is a necessary prerequisite for mass adoption of blockchain-based financial infrastructure. Blanksquare addresses this challenge by: * **Equipping developers** with a robust, intuitive interface that hides the complexity of zero‑knowledge proofs and advanced cryptography, enabling the integration of privacy into wallets and rapid creation of privacy-preserving applications without specialized expertise. * **Delivering ready‑to‑use, privacy‑enhancing solutions** powered by Shielder SDK, and showcasing its capabilities. By eliminating the need to build cryptographic primitives from scratch, Blansquare opens the door to integrating shielded accounts directly in wallets. Moreover the incentive structure around the Blanksquare is designed so that developers of interfaces (wallets, apps) through which private traffic is routed, earn part of the revenue, making it sustainable. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter: ``` GET https://docs.blanksquare.io/key-concepts/fixing-privacy-in-web3.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.