Privacy model

Merces optimizes for maximum privacy with high-performance transaction throughput. The default model (private transfers) guarantee full onchain privacy, while the operating nodes learn only minimal information.

The protocol is capable to optimize for either higher performance or more privacy guarantees.

Private transfer (default)

Provides full onchain privacy by encrypting all transaction data: sender, recipient, asset, and amount. No single party — including TACEO — sees what anyone holds or sends. The transaction graph (i.e., which addresses transacted) is visible to node operators, not onchain. Allows for up to 1,000 TPS (50+ per instance, parallelized).

Optimizations

Depending on the specific application the system might be optimized towards more throughput or an even higher level of privacy.

Graph-private transfer

Encrypts everything the private mode does, plus hides the transaction graph from node operators. No single party sees anything.

Use it if: you need a stronger trust assumption against node operators than the default option provides.

Partial-private transfer

Encrypts asset and amount. Sender and recipient remain visible onchain. Similar to privacy guarantees FHE-based solutions can offer.

Use it if: you need higher throughput than the private tier and can accept visible counterparties.

Comparison

	Partial-private	Private (default)	Graph-private transfer
Hides	Asset, amount	Sender, recipient, asset, amount	Sender, recipient, asset, amount, transaction graph
Reveals	Sender, recipient (onchain)	Transaction graph to node operators only	Nothing, to any party