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VerifiedX Adds Privacy Layer for vBTC and VFX Asset Transfers
Encrypted transactions now hide sender and receiver data on the VerifiedX ledger. This shift limits public tracking of vBTC and impacts whale activity monitoring.
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VerifiedX has officially deployed its Prism privacy layer, a new infrastructure component designed to facilitate confidential transactions across its ecosystem. The update introduces encrypted transfer capabilities for vBTC and the native VFX token, allowing users to obscure transaction details while maintaining network compliance.
Confidentiality and Asset Integration
Prism functions as an optional privacy overlay for the VerifiedX ledger. Users can now execute transfers where the sender, receiver, and transaction amount remain hidden from public view. This functionality is currently limited to vBTC and VFX, with the protocol providing flexible privacy controls that allow participants to toggle visibility settings based on their specific transaction requirements.
The integration of Prism follows a broader industry trend toward enhancing user anonymity within crypto market analysis frameworks. By implementing zero-knowledge proofs or similar cryptographic methods, VerifiedX aims to provide institutional and retail users with a mechanism to shield balance data from public block explorers. This development is intended to address concerns regarding the transparency of public ledgers, which often expose the full history of wallet holdings and historical transaction volume.
Network Impact and Liquidity
While the layer offers increased privacy, the protocol maintains a set of administrative hooks to ensure that encrypted transactions do not bypass existing regulatory safeguards. The deployment of Prism is expected to influence how liquidity providers interact with the VerifiedX ecosystem, as the ability to hide large-scale movements may alter the visibility of whale activity. Traders monitoring Bitcoin (BTC) profile data should note that vBTC transactions routed through Prism will no longer be traceable through standard public ledger monitoring tools. VerifiedX has not yet announced plans to extend Prism support to other assets currently bridged to its network.