Overview
What is Veilnet?
Veilnet is an innovative privacy protocol designed to shield your assets and transactions on public blockchains. It functions as a secure vault where deposits are pooled on‑chain, while individual balances and activities live in a private state accumulator managed by an off‑chain sequencer and represented as encrypted commitments in a Merkle tree.
Architecturally, Veilnet is inspired by Fully Homomorphic Encryption (FHE) — we aim for “encrypted by design” state — but today this is implemented with classic commitment/Merkle cryptography and shielded execution, similar in concept to an FHE sequencer used by Zama fhEVM and fhenix
Core Privacy Thesis
Public blockchains inherently expose all user data. Veilnet believes that privacy is a fundamental right and a necessary component for the mainstream adoption of Web3. By leveraging advanced cryptographic techniques—implemented via robust Merkle tree commitments and stateless execution—Veilnet brings true privacy to public networks without sacrificing decentralization or security.
High-Level Architecture
Veilnet operates on a hybrid model:
- On-chain Vault: A standard EVM smart contract that holds assets securely
- Shielded State Layer: An ephemeral execution environment that processes state transitions cryptographically before settling on-chain
- Merkle Commitments: Periodic cryptographic proofs (Merkle roots) are committed on-chain to verify the integrity of the shielded state
Veilnet does not run on Zama’s fhEVM or Fhenix’s CoFHE / FHE rollup stack. Instead, Veilnet uses its own “FHE‑inspired” contract design: balances and transfers are represented as encrypted commitments inside a Merkle tree and updated by a shielded sequencer, with only Merkle roots and nullifiers exposed on‑chain.
This gives us an encrypted‑by‑design shielded ledger while remaining compatible with standard EVM chains like Base and Ethereum, without depending on any specific third-party FHEVM implementation, and building our own core-FHE/ZK/Merkle Tree approach.
Supported Chains & Assets
Base (Mainnet)
- Vault Address:
0x58a498Da97737117E7FaDbC924dA654c0153De4a - Supported Assets: ETH, USDC (
0x833589fCD6eDb6E08f4c7C32D4f71b54bdA02913)
Ethereum (Mainnet)
- Vault Address:
0x97B2009b4F734E0b1F6c8E159B5E491C22E3E1Bc - Supported Assets: ETH, USDC (
0xA0b86991c6218b36c1d19D4a2e9Eb0cE3606eB48)
More chains and currencies coming soon...
Main Product Modules
- Shielded Vaults: Deposit assets to hide your balance
- Private Transfers: Send assets to other users without public trace
- Private Bridging: Move assets across supported chains privately (Coming soon)
Key Differentiators
Not Just a Mixer
Mixers are generally single-use obfuscation tools. Veilnet is a persistent shielded ledger where you can hold and manage your portfolio privately.
Stateless Execution Model
Rather than calculating proofs entirely client-side (which can be slow), Veilnet uses a centralized, secure cryptographic sequencer for state transitions, optimizing for speed and UX while maintaining security via Merkle proofs.
Contract-Level Privacy
Privacy is enforced at the smart contract level, enabling trustless verification. The sequencing layer cannot steal funds; it can only propose mathematically valid state updates.