Introduction

Confidential Assets are unique feature allowing anyone to create its own asset / token and be fully compatible with wallets, exchanges and other services.

This is possible because it is directly implemented in base layer of the blockchain, and not as a second layer solution.

Each asset is represented by a unique asset ID (32 bytes hash). This asset ID is used to identify the asset in transactions and in the blockchain.

It allows to have fully private balances and transferred amounts just like XELIS.

As an example, XELIS is a confidential asset itself with the asset ID 0000000000000000000000000000000000000000000000000000000000000000.

NOTE: Currently, there is no possibility to create your own confidential asset. This is on hold until Smart Contracts are released.

Advantages

• Privacy: Confidential Assets allow to have fully private balances and transferred amounts.
• Compatibility: Confidential Assets are fully compatible with wallets, exchanges and other services.
• Security: Confidential Assets are implemented in base layer of the blockchain, and not as a second layer solution.
• Decentralized: Confidential Assets are fully decentralized and trustless, nobody can freeze or censor your assets.
• Management: if deployed by a Smart Contract, it can be minted (example: a stablecoin based on a mint/burn mechanism).

Limitations

Unfortunately (or fortunately ?), confidential assets outside of a Smart Contract cannot be managed by the owner. This means that the owner cannot freeze or burn the assets you own, but also cannot take, for example, a % fee on each transfer.