Market participants are gradually reaching a consensus: privacy has become a core infrastructure of the on-chain financial ecosystem.

Asset flow across multiple blockchains has achieved a considerable level of maturity, but there is a overlooked structural flaw—privacy data and transaction information do not migrate with assets across chains. This asymmetry of information actually enhances the value of privacy technology. Whoever controls privacy controls the most important discourse power in on-chain finance.

Because of this unique and hard-to-replicate characteristic, the privacy layer has evolved into the most durable competitive barrier with network effects. Once users become accustomed to a particular privacy solution, the cost of migration becomes extremely high—this is where long-term competitive advantage lies.