How Does ERC-7984 Make On-Chain Assets Completely Invisible?

Public ledgers expose everything. Every token balance and transaction flow is visible to anyone, making users prime targets for MEV bots and front-running attacks. But what if smart contracts could compute on encrypted data without ever decrypting it?

Enter ERC-7984 (Confidential Fungible Token). This session unpacks the power of Fully Homomorphic Encryption (FHE) and how the fhEVM ecosystem—spearheaded by OpenZeppelin and Zama—is bringing true privacy to Web3. I will break down the architectural leap from standard ERC-20s, explore the practical challenges of building encrypted smart contracts, and discuss how hiding on-chain states will fundamentally redefine DeFi security.