# What is Encrypted ERC ? **Encrypted ERC** is a privacy-focused implementation of ERC20-like tokens that allows users to perform confidential transactions on the blockchain. Unlike traditional ERC20 tokens where all balances and transfers are publicly visible, Encrypted ERC uses advanced cryptographic techniques to keep transaction amounts and user balances private while maintaining the ability to verify their correctness. At its core, Encrypted ERC solves one of the fundamental challenges in blockchain technology: the tension between transparency and privacy. While blockchain's transparent nature is crucial for security and verification, it can be problematic for businesses and individuals who need to keep their financial transactions private. Encrypted ERC bridges this gap by implementing a system where transactions can be verified without revealing the actual amounts being transferred. In addition, Encrypted ERC incorporates a powerful auditability feature that addresses regulatory compliance concerns. This feature allows designated regulatory authorities to access and review transaction details through auditor keys, ensuring that while transactions remain private to the general public, authorized regulators can perform necessary oversight functions when required. This balanced approach maintains user privacy while supporting regulatory compliance frameworks in the blockchain ecosystem. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://avacloud.gitbook.io/encrypted-erc/getting-started/what-is-encrypted-erc.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.