Zoom out. Privacy isn’t just a meta. As a bald guy once said, crypto without privacy is not crypto. We agree. Avalanche has built for privacy since inception. While we may be making this post to hop on a trend, the reality is the industry is just catching up. Proof: • Avalanche’s first private L1 was launched in 2022. Administering over 5.5b+ in value and growing. • Avalanche was one of the first chains to launch encrypted ERCs on a public blockchain. Privacy is a massive market and was always a part of the vision. In this post we will go over the current use cases on Avalanche as well as where onchain privacy is headed. There are two main ways Avalanche offers privacy. • Private Avalanche L1s • Encrypted ERCs (eERCs) Private Avalanche L1s: These are L1s that employ a restricted, permissioned validator set, hiding data from the public. These are extremely popular among institutions and enterprises who may require privacy for regulatory reasons as well as customer confidentiality. Two great examples of this are Intain and Toyota’s whitepaper for their MON blockchain. Intain leverages privacy on their Avalanche L1 to process sensitive financial data such as borrower identities, loan details, and asset valuations, ensuring compliance with regulatory requirements like KYC and AML while preventing unauthorized access or data exposure in a multi-trillion-dollar market. Toyota needs privacy in its blockchain PoC to securely handle sensitive vehicle data, including ownership records, usage histories, insurance details, and carbon credits, while complying with global regulations on data protection and vehicle safety to prevent fraud and enable trusted cross-border mobility. Private Avalanche L1s continue to be in high demand. Now for the cyperpunks. Encrypted ERCs (eERCs): a protocol that allows secure and confidential token transfers on Avalanche blockchains. Launched in March 2025 by @AvaCloud, the eERC protocol offers privacy without requiring protocol-level modifications or off-chain intermediaries. We’ve quickly seen the avalanche community build and iterate on this protocol. A great example is @encryptedERC, which allow the encryption of popular assets such as KET, BTC.b, AVAX, and even USDC on the Avalanche C-Chain. We’ve also seen some promising results from the recent Hack2Build competition with projects that encrypt payroll, private key management, and more. This trend is only getting bigger. Privacy on Avlalanche can enable: • Anti-frontrunning in swaps • Wallet tracking prevention • Private, trustless legal agreements • Cross boarder payroll • Healthcare applications • Private prediction markets • Supply Chain integrations • and more. While privacy is the current meta, it’s also the future Avalanche has been building towards. Privacy, Powered by Avalanche🔺(Avalanche🔺)