# Introduction

## Links

* Github: <https://github.com/FhenixProtocol/redact>

## Overview

Redact is the first dApp built on the Fhenix CoFHE Coprocessor. Redact is a confidential asset management platform, using Fully Homomorphic Encryption (FHE) to enable confidential token balances and private token transactions. Redact provides an entry point for users to interact with confidential ERC-20 tokens ([fhERC20](https://github.com/FhenixProtocol/encrypto-contracts/blob/master/FHERC20.MD)) and in the future will support FHED, a confidential stablecoin.&#x20;

By integrating with Fhenix’s [CoFHE](https://cofhe-docs.fhenix.zone/), Redact enables users to perform on-chain transactions while maintaining complete data privacy. Unlike traditional DeFi platforms, where transactions and balances are publicly visible, Redact ensures that amounts and balances details remain private while maintaining compliance with on-chain verifiability.

### Key Objectives

Redact is designed to achieve the following:

* Confidential Transactions: Users can send and receive assets privately, with transaction details encrypted.
* fhERC20 Support: Standard ERC-20 tokens can be wrapped into fhERC20, enabling confidential DeFi interactions.
* Seamless User Experience: A browser-based wallet allows users to wrap (encrypt), unwrap (decrypt), send, receive, and manage balances with an intuitive UI.

### Why Confidentiality Matters

Traditional blockchain networks expose all transaction details, creating concerns around financial privacy, front-running, and surveillance. With Redact:

* Users retain full privacy over their financial data.
* Businesses and institutions can execute confidential transactions without exposing sensitive financial flows.
* DeFi applications can offer private financial services without compromising transparency.

Redact facilitates the processing of encrypted transactions on-chain without disclosing their contents, ensuring that confidentiality does not compromise verifiability. By providing users with a simple way to convert their public erc20 tokens into confidential fhERC20 tokens, Redact serves as an entry point into confidential DeFi.

Read more about the motivation behind Redact here:

{% content-ref url="motivation" %}
[motivation](https://docs.redact.money/motivation)
{% endcontent-ref %}

## Core Functionalities

Redact enables users to:

* Wrap ERC-20 Tokens: Encrypt and convert standard ERC-20 tokens into fhERC20 for private transactions.
* Send & Receive Confidential Transactions: Execute on-chain transactions while keeping amounts private.
* Manage Confidential Balances: Maintain user balance confidentiality.&#x20;

<figure><img src="https://3289548442-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FCBtZLqCP6brcfNsL0LJh%2Fuploads%2FRR6iGr1dth7tsYMjw5DL%2FConfidential%20Tx%20Flow.png?alt=media&#x26;token=f9a85640-9c29-4ea6-bec9-1cd91f4e1a04" alt=""><figcaption><p>Confidential Transaction Flow</p></figcaption></figure>

<figure><img src="https://3289548442-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FCBtZLqCP6brcfNsL0LJh%2Fuploads%2FqA6to32ywOf4txAL7Gtw%2FConfidential%20Tx%20Flow-1.png?alt=media&#x26;token=f4dd555c-4861-4ba7-9851-c9b578d131d1" alt=""><figcaption><p>Confidential Balance Flow</p></figcaption></figure>

### How It Works

Redact’s core mechanism consists of:

1. Confidential Tokenization: Users wrap ERC-20 tokens into fhERC20 to enable private transactions.
2. Confidential Stablecoin Minting: Users mint FUSD by locking stablecoins in a secure contract.
3. Confidential Transactions: When transferring tokens, only the sender and receiver are visible, while amounts and balances remain hidden.
4. Fhenix Coprocessor Execution: All confidential computations (wrapping, minting, sending) run off-chain on the CoFHE, ensuring scalability and security.


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