#newt $NEWT @NewtonProtocol #NEWT
i kept thinking about one problem with onchain compliance.
if you're checking whether a wallet is sanctioned or whether a user passes KYC that data is sensitive. you can't just put someone's identity details on a public blockchain.
so how does Newton actually handle this?
operators do see the real data during evaluation. they have to — they need to check it against the policy. but that data never gets stored onchain permanently. only a hash goes onchain. the actual information stays off.
Newton uses something called HPKE encryption during the evaluation process. the sensitive data is encrypted in a way that only the relevant operators can read it while the check is running.
once the check is done, the result is what gets recorded not the data itself.
i found this interesting because it means a bank or institution could run a KYC check through Newton without exposing their customers' details publicly.
the part i haven't figured out: if only a hash is stored, how does anyone verify later that the right data was actually checked ?

does hiding the data during compliance checks make the system more private — or just harder to audit?