Recently, I came across an interesting technical direction—there are teams actively working on solving the three major pain points of on-chain institutional assets.

In simple terms, the main hurdles for bringing real assets onto the blockchain are: privacy protection, performance efficiency, and compliance constraints. They may seem unrelated, but solving them together is challenging. One team is using a self-developed virtual machine called Piecrust to optimize the speed of zero-knowledge proof generation, enabling Solidity contracts to handle privacy transactions more efficiently on-chain. But that's not the most critical part—they've integrated the concept of "built-in compliance" into the protocol layer.

What does this mean? It means encoding legal rules directly into the chain through the XSC standard. Who can buy the asset, how much they can hold, and how transfers are legally valid—all of these are enforced not by centralized audits but by the chain's consensus mechanism. Imagine a scenario where, during a transaction, privacy protection, performance efficiency, and compliance checks are all completed simultaneously. For institutions aiming to bring real assets onto the chain, this is a truly practical solution.

From a technical architecture perspective, this approach indeed coordinates several seemingly conflicting requirements.