What is Rayls Enygma?

In my previous post, Rethinking privacy for blockchain adoption, I shared the journey that led us to the creation of Rayls Enygma, a groundbreaking step forward in privacy-preserving blockchain technology. That journey took us deep into some of the most influential decentralised projects in the space. Along the way, we engaged with experts, explored real-world use cases, and contributed to pioneering initiatives such as Project Drex (now entering Phase Three) and JPMorgan's Project Guardian/EPIC.

This collaborative research shaped our understanding of what truly matters in building programmable privacy for blockchain networks and what developers, enterprises, and institutions actually need.

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What is Rayls Enygma?

Rayls Enygma is a programmable privacy layer designed to make confidential transactions and data sharing possible on EVM-compatible blockchains. Whether you're an individual user or a large-scale enterprise, Enygma ensures your data remains secure, private, and verifiable at all times.

At its core, Rayls Enygma brings together several advanced cryptographic techniques:

• Homomorphic Encryption: Enabling computation on encrypted data without exposing it.
• Zero-Knowledge Proofs (ZKPs): Validating transaction authenticity without revealing the underlying data.
• Private Message Tags: Ensuring only intended recipients can read messages and decrypt sensitive payloads.
• Key-Pair Control Systems: Providing granular access control, audibility, and data permissioning.

Rayls Enygma is offered natively within the Rayls Subnet Ecosystem and is fully EVM-compatible, allowing seamless integration across Ethereum-based chains and smart contract platforms.

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Two Core Functions: Confidential Transfers and DvP/PvP

Rayls Enygma comprises two main functionalities:

• Confidential Transfers: Empowering private and secure payments or token transfers.
• Confidential DvP (Delivery vs Payment) & PvP (Payment vs Payment): Facilitating private asset swaps, such as NFTs for digital currency or tokenised fiat for crypto.

Both functions adhere to industry standards and are designed with flexibility in mind to suit various institutional and DeFi use cases.

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Use Case Spotlight: Private Payments with CBDCs

Let’s explore a practical example: a confidential payment use case involving a CBDC representation within a private subnet.

Imagine a bank issues a private digital token representing a national currency:

• This token is securely held in the core banking system (akin to a digital vault).
• The bank distributes wrapped copies of this token to branches or subsidiaries.
• When a branch initiates a payment, it burns its wrapped token and triggers a confidential transfer.
• The recipient branch mints a new copy—instantly reflecting the transaction on its books.

What makes this powerful and unique from other solutions is the verifiability of privacy. All balances are commitments validated through zero-knowledge proofs, so no sensitive data is exposed, yet every action can be cryptographically confirmed.

Furthermore, using auditor rights, approved entities can inspect selected transactions—if permitted by the key-pair encryption model. All others remain fully obscured, thanks to transaction mixing and private tagging, which prevents third parties from discerning the transaction’s contents or participants.

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Use Case Spotlight: DvP Asset Exchange

Here’s how Rayls Enygma facilitates a confidential asset swap (DvP):

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Step 1: Asset Issuance & Registration

• A Rayls Node issues an NFT and submits it to the Subnet Operator.
• Once approved, the NFT is listed on the Subnet Hub (SH).
• The NFT is deposited into the Enygma DvP smart contract.

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Step 2: Private Exchange

• Two parties (e.g., John and Alice) agree to a private, on-chain swap.
• John deposits the NFT; Alice deposits Enygma-compatible ERC-20 tokens.
• Both parties confirm via matching private messages to the DvP contract.
• The smart contract checks preconditions, validates the deal, and executes the swap.
• Wrapped tokens reflecting new ownership are issued. Withdrawals can follow.

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Unlike traditional permissioned systems, Enygma ensures true transactional confidentiality - not just access restriction. This means even subnet participants can't see sensitive data unless explicitly authorised.

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What’s Next?

In our next post, we’ll dive deeper into the technical underpinnings of Rayls Enygma, including:

• Auditor visibility and compliance controls

• Key management and access delegation

• Private tagging architecture

• Scalability of privacy-preserving transactions

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For developers ready to explore, Rayls Enygma is available via the Rayls Subnet. Check the Subnet section of our documentation to get started today.

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