Applied Blockchain has officially introduced Silent Data, a new Layer 2 (L2) network for Ethereum designed to bring privacy to smart contract interactions. The solution aims to solve a critical challenge for developers and institutions by allowing decentralized applications to use sensitive data without exposing it on a public ledger.

Bringing Confidentiality to Smart Contracts

Silent Data functions as a privacy-enhancing layer built on top of the Ethereum blockchain. Its core purpose is to enable smart contracts to access and process private information securely. This capability is crucial for use cases that require confidentiality, such as financial services, identity verification, and supply chain management, where exposing raw data on-chain isn’t feasible.

Integration with FCA-Regulated Archax

A key component of the launch is the integration of Silent Data with Archax, a digital asset exchange, brokerage, and custodian regulated by the UK’s Financial Conduct Authority (FCA). This partnership provides a compliant environment for institutions looking to leverage blockchain technology while adhering to strict regulatory standards. By combining Silent Data’s privacy features with Archax’s regulated framework, the collaboration aims to foster greater institutional adoption of decentralized finance technologies.