
The economics of scaling blockchain privacy

by Marcella Arthur
CRO in Residence at Optalysys
Global finance is transforming. In a world where tokenised assets are scaling fast (Citi estimates tokenised deposits could support over $100 trillion in annual flows by 2030) and stablecoins are already processing trillions in yearly volume, it’s no surprise that banks around the world are actively exploring and deploying blockchain technology.
But, public ledgers are inherently transparent. Institutional, regulatory and consumer demands for data confidentiality are forcing firms to investigate privacy solutions that can work within blockchain technologies and perform predictably on a global scale.
Encrypted computation is often described as the holy grail privacy.
The ability to process data while it remains encrypted unlocks powerful use cases for enterprises exploring blockchain: confidential transactions, staking and positioning, data-sharing between organisations, and new forms of digital identity.
So why hasn’t it become standard?
The answer isn’t a lack of cryptographic capability, it’s the economics. Advanced privacy technologies can be incredibly compute-intensive and performance and costs have historically behaved too unpredictably for serious adoption as usage grows.
This unpredictability is what kills monetisation. You cannot reliably price services, design products, or commit critical workflows to infrastructure that you cannot model effectively.
For any institution, the single most important metric is not the fastest possible encrypted transaction. It is the variance of performance and cost as usage grows.
The opportunity for GSIs and MSPs is to flip the narrative: own the pattern for predictable encrypted compute, and package it as a premium, repeatable service
When volatility stands in the way of adoption
On conventional hardware, advanced privacy technologies such as Fully Homomorphic Encryption (FHE) and complex zero-knowledge proofs are extremely resource-intensive. Their performance can fluctuate based on system load, contention with other workloads and the complexity of the underlying operations.
In practice, this volatility creates massive risk in three critical areas for your clients:
- Operational – If the network gets busy: a volatile market event, a product launch, or a burst of user activity, and encrypted flows slow or stall, clients will notice. Transactions that used to settle in milliseconds now take seconds; infrastructure costs for the same workload suddenly multiply, firms lose credibility and users lose trust
- Regulatory – Risk teams don’t solely judge systems on average behaviour; they must look at how they behave under stress. If encrypted paths collapse under load, privacy starts to look like a new source of operational and conduct risk, rather than a shield. With regulators closing in, these paths must be wateright.
- Commercial – If a bank cannot predict performance and cost, they won’t move mission-critical workflows onto that platform – no matter how compelling the use case
This is not hypothetical. Deloitte found that regulatory complexity and operational risk are top concerns for digital-asset initiatives, ahead of pure technology questions, reflecting how much weight decision-makers put on predictable behaviour and governance.
For services providers, volatility translates directly into projects that can’t be priced and services that can’t be guaranteed. This risk is a direct threat to the repeatability and profitability of any privacy-enabled service line.
Dedicated acceleration is the stabilising foundation for blockchain privacy
This is where architecture becomes a critical commercial consideration.
At Optalysys, we develop dedicated, FPGA-based encrypted compute servers specifically architected for deploying FHE on blockchain. Instead of running heavy cryptography on general-purpose CPUs and GPUs alongside everything else, we move the core operations into specialised hardware that is tuned for encrypted workloads.
This approach delivers several concrete benefits:
- More predictable performance – FPGAs allow us to implement the critical operations at the hardware level, with fixed pipelines and parallelism tailored to the workload. That reduces latency variability and makes behaviour under load easier to model – the foundation for credible SLAs
- Improved efficiency – Specialised acceleration can significantly reduce the resources required per encrypted operation, lowering the effective privacy tax on each transaction or query. Lower, more stable operating costs translate into healthier, more predictable margins
- Clearer capacity planning – Because the performance characteristics of the accelerator are well understood, it becomes easier to forecast how encrypted demand will translate into infrastructure requirements. This means you can design service tiers and pricing models that scale sensibly
LightLocker Node™ is a dedicated encrypted-compute engine designed to sit alongside existing infrastructure, providing a stable, scalable foundation for privacy-preserving workloads.
This turns blockchain privacy from an implementation detail to a product service that you can wrap, sell and repeat.
Why is blockchain privacy critical now?
For blockchain-based systems to support meaningful, regulated workloads, privacy must become part of their fabric – something end-users do not notice, and architecture teams can rely on without constant intervention.
Blockchain can only be deployed responsibly and recognise its trillion-dollar potential with robust privacy measures. And advanced privacy will only go mainstream when it is:
- Economically predictable
- Operationally dependable
- Efficient enough to scale sustainably
The infrastructure that uses fewer resources per encrypted operation, scales more gracefully and behaves more consistently will win out. FPGA-based acceleration is a practical way to reach that point today: efficient by design, tuned for encrypted workloads, and capable of delivering the predictable performance that real-world adoption demands. erformance and policy reinforce eachother — will be the ones clients call when they’re ready to move from pilots to production.
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