Each institution installs a Privacy Ledger to independently manage their internal operations and privately transact tokens with other institutions, dApps or users across the Rayls ecosystem.

Think of it like a tokenized core banking system (a ledger, a database and some business logic) that can also securely and privately transact with other institutions. It's the best of both worlds, where enterprise architecture and privacy meets access to the blockchain rayls (see what we did there? 🤓).

But what exactly is a Privacy Ledger?

A Privacy Ledger is a scalable, single-node EVM ledger integrated with a MongoDB database. Privacy Ledgers are based on the Geth execution client, with several modifications to fit the Rayls system.

Okay, and what can I do with it?

By integrating MongoDB with the Ethereum Virtual Machine, a Privacy Ledger allows a Financial Institution to:

• Privately issue fungible and non-fungible tokens- currently supporting ERC-20 and ERC-1155.

• Transfer and exchange tokens internally between their own Privacy Ledger accounts - e.g. transfers between customer accounts, or cash management between business lines or trading assets.

• Privately and anonymously transfer or exchange arbitrary messages and tokens with other Privacy Ledgers - e.g. payment requests, settlement, or atomic delivery versus payment (DvP). Within a Private Subnet, only the two transacting parties and the Subnet Auditor can access the encrypted transaction data.

• View an explorer of all internal and inter-institution transactions - transaction data between Privacy Ledgers can only be decrypted by the transacting parties. The data remains fully encrypted and private from all other Privacy Ledgers.

• Write smart contracts to automate both internal and inter-institution transaction workflows.

• Write smart contracts that enforce Privacy Ledger governance rules - such as freezing, seizing or locking tokens.

• Connect to and transact across the Rayls Public Chain - to access public blockchain ecosystem liquidity and transact with any other connected Rayls Privacy Ledger, dApp or KYC'd Retail User.

• Integrate (via API) with existing systems and data sources - e.g. core banking software, ERP systems or price data feeds.

That's nice, but what are the benefits?

In addition to all the standard benefits of blockchains, running a Rayls Privacy Ledger also enables:

• Fully private, independently controlled internal operations - a Privacy Ledger is installed within an institution's private environment, behind their own firewalls. No other entity has any access nor control.

• Private inter-bank transactions with near real-time settlement - institutions can privately mint, distribute and transact a range of EVM-compatible fungible and non-fungible tokens with other institutions, which settle with finality in seconds.

• A secure, scalable architecture that can process over 10,000 TPS - Privacy Ledgers can execute over 10,000 transactions per second and support enterprise requirements such as high availability, disaster recovery and monitoring.

• Regulated access to the benefits of tokenization and DeFi - institutions can use their Privacy Ledger to execute transactions internally, privately with other institutions within a Rayls Subnet, or via the Rayls Public Chain to access the public blockchain ecosystem for its liquidity, dApps and users.

• Adherence to compliance and standards - Identity credentials for KYC/AML/CFT can be securely stored within the system and shared as part of a transaction, while using common messaging and token standards (e.g. ISO 20022, ERC-20, ERC-1155).

• Programmability and automation that enable new business models and workflows.

How do I interact with my Privacy Ledger?

Once installed, there are three ways for a Financial Institution to operate a Privacy Ledger:

1. Rayls SDK - developer-friendly CLI with standardised endpoints
2. Rayls Custody - interface via the Rayls Custody API
3. Rayls Privacy Ledger Application (on our roadmap, coming soon!)