Encrypted ERC (eERC)

Overview

Encrypted ERC (eERC) is a confidential token standard that encrypts token balances and transfer amounts on-chain, while senders, receivers, and timestamps remain public. Because it is a Solidity standard like ERC-20 — not a separate chain or an off-chain intermediary — it runs on the execution layer of any EVM chain with BN254 elliptic-curve precompiles and a block gas limit above ~1M (a confidential transfer costs ~947,000 gas, roughly 15× a standard ERC-20 transfer).

It is designed for issuers who want to use shared blockchain infrastructure without exposing sensitive balances or amounts — a tokenized fund, stablecoin, deposit token, or settlement asset can move on-chain without publicly revealing every holder's balance or transaction size. Correctness is enforced by zk-SNARKs (Groth16) together with partially homomorphic (ElGamal) encryption.

Features

• Amount and balance privacy — account balances and mint / transfer / burn amounts are encrypted on-chain; an optional memo can ride along with a transfer, end-to-end encrypted and readable only by sender and receiver.
• Two deployment modes — Standalone for fresh private-native tokens, or Converter to wrap an existing ERC-20 (deposit to encrypt, withdraw to decrypt).
• Built-in compliance path — a single, rotatable auditor key can decrypt all amounts and balances.
• Deploy anywhere — no protocol or node-level changes; supported across Ethereum, Arbitrum, Base, Optimism, and Avalanche C-Chain and L1s.

Use Cases

• Tokenized funds, stablecoins, and deposit or settlement tokens that need confidential balances.
• Supply-chain assets where end users need traceability but distributors must not see each other's volumes.
• Any regulated issuer that needs amount and balance confidentiality with a designated auditor.

Documentation

• EncryptedERC on GitHub
• SDK: @avalabs/eerc-sdk — exposes the useEERC hook for registration, key handling, and proof generation, plus a useEncryptedBalance handle per token.