Note: Selective Privacy is currently implemented as an application-layer stealth address mechanism on BabyChain. Full zero-knowledge privacy features (ZK roadmap) are under active development and not yet available in the current testnet. The implementation described below reflects the current architecture.

Selective Privacy Layer

BabyChain gives users privacy by default with the ability to disclose transaction details on demand — a model designed for both individual users and regulated financial institutions.

"Not anonymous, selective."

What it is

Every transaction on BabyChain is private by default. The sender, recipient, and amount are protected via stealth addresses and application-layer encryption, visible only to the parties involved.

Technical note: The current privacy implementation uses stealth address derivation and encrypted payloads at the application layer — it is not zero-knowledge (ZK) proving at the protocol level. Transaction metadata (block times, gas usage) remains publicly visible on-chain. Full ZK integration is on the research roadmap. A technical due-diligence team should verify these claims against the deployed contract code. Unlike fully transparent blockchains where anyone can see every balance and transfer, BabyChain treats financial privacy as the baseline.

But unlike fully anonymous systems, BabyChain gives users a compliance switch: with one tap, a user can grant a bank, auditor, or regulator read-only access to specific transactions or time windows.

How it works

1. Stealth addresses. Each payment generates a one-time destination address that cannot be linked to the recipient's main wallet. Only the recipient can discover incoming payments.
2. Private by default. Transaction details (amount, sender, receiver) are encrypted at the protocol level. No public mempool, no public balance list.
3. Compliance mode. The wallet stores a disclosure key. When a bank or regulator requests proof of a transaction, the user authorizes a one-time view key that reveals only the requested data.

What banks get

• Audit-ready disclosure. A customer can share transaction proof without exposing their entire financial history.
• Regulatory compliance. Know-Your-Transaction (KYT) can be performed on demand, without breaking the privacy of unrelated transactions.
• No wholesale surveillance. Banks can verify specific transactions without building a system that spies on all customers.

What users get

• Privacy by default. Your balance and transaction history are yours alone.
• One-tap disclosure. Share proof of funds or payment with a bank, landlord, or merchant when needed.
• No loss of control. You choose what to share, with whom, and for how long.

Technical note: ZK integration roadmap

The current privacy layer uses stealth addresses and encrypted payloads at the application level. A full zero-knowledge proof (ZK) integration is in active research and targeted for mainnet. ZK will allow:

• Proof of solvency without revealing balance
• Proof of payment without revealing the amount
• Regulatory compliance without revealing counterparties

This makes BabyChain's Selective Privacy Layer a hybrid: practical privacy today, with a roadmap toward mathematical privacy guarantees.