Encifher has introduced a groundbreaking privacy-focused crypto payments infrastructure designed to match the speed, transparency, and reliability of India’s UPI—without compromising decentralization.

In an exclusive interview with UnoCrypto, Rishabh Gupta, Founder of Encifer said, “We used advanced cryptographic and hardware primitives to enable computation on encrypted data in a scalable manner for public blockchains.”

He adds, “This enables end-to-end encrypted data to enter blockchain and get computed upon inside smart contracts and then smart contracts take an action based on the result. At the same time the custody of funds is maintained with the user only.

Aishwary Gupta, Global Head of Payments at Polygon Labs, is backing this vision. He believes public infrastructure can deliver the same innovation — especially for cross-border payments, subsidies, wallets, and financial inclusion.

How Will The UPI Like System Work?

India’s fintech journey is globally celebrated especially the development of the UPI system, but the next big leap is programmable digital money.

While CBDCs are leading this shift, the bigger question is: can we replicate that speed, control, and privacy — without centralization?

Encifher addresses this challenge by providing a privacy-first blockchain infrastructure platform, enabling Central Bank Digital Currency (CBDC)-grade architecture on public blockchains.

The platform integrates encrypted transaction values with transparent addresses, ensuring user privacy while maintaining verifiability for regulators. This dual approach offers enhanced confidentiality for users alongside the necessary transparency for regulatory oversight.

Even Polygon labs has aided the development as the co-processor design is pretty modular and can be used by any EVM/alt VM chain of Polygon CDK.

Also Read: India’s Top Court Flags Bitcoin as ‘Hawala-Like’, Demands Clear Crypto Rules

Encifher Taps EigenLayer to Scale Privacy Stack Without Central Points of Failure

Encifher’s privacy stack is designed to scale across networks like Polygon without introducing central points of failure by leveraging a decentralized computation engine secured through Ethereum’s economic security, specifically using Actively Validated Services (AVSs) such as EigenLayer.

This setup ensures that the integrity of the system is maintained through incentive alignment—any node attempting to act maliciously faces the risk of having its stake slashed.

Moreover, the system is fully permissionless, allowing anyone to run a computation engine node.

This open participation model, combined with cryptoeconomic enforcement, eliminates reliance on centralized validators and enhances fault tolerance, making the privacy infrastructure both scalable and resilient across various blockchain environments.

Balancing Privacy and Compliance in UPI-Like Decentralized Systems: What is Encifher Guaranteeing?

Maintaining data confidentiality while ensuring transparency and regulatory compliance in a decentralized, UPI-like system requires a sophisticated balance of cryptographic techniques and system design.

Blockchains function as public ledgers that inherently prevent double spending and record transactions transparently.

However, to protect user privacy, systems like Encifher employ advanced cryptographic proofs—such as zero-knowledge proofs—which allow the blockchain to verify that a transaction has been correctly executed without revealing the underlying data.

This ensures that sensitive details remain confidential, even as the integrity of the transaction is publicly verifiable. Compliance is built into multiple stages of the transaction lifecycle, starting with rigorous onboarding processes that include liquidity checks.

Additionally, the architecture enables selective decryption access for authorized regulatory bodies, allowing audits without compromising user privacy.

This layered approach allows decentralized financial systems to replicate UPI’s trust and compliance mechanisms, while advancing data privacy and user sovereignty in a public blockchain environment.

Also Read: Indian Cyber Agencies Flag Crypto as a Growing Security Threat: What is Happening?