> For the complete documentation index, see [llms.txt](https://privax-1.gitbook.io/privax-protocol/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://privax-1.gitbook.io/privax-protocol/how-we-address-them.md).

# How We Address Them

Privax aims to resolve these issues by introducing a **private state** managed by the wallet and integrating external services to help users manage virtual assets across blockchains without requiring deep technical knowledge.

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#### 🔐 Wallet Key Management

* **Account Abstraction (AA)** and **Multi-Party Computation (MPC)**

**AA** decouples account logic from the address in EVM chains, allowing smart contracts to perform actions typically reserved for EOAs (Externally Owned Accounts).\
Benefits include:

* Multi-signature support
* Automated transactions
* Built-in compliance logic

**MPC** in UTXO chains like Bitcoin enhances security by distributing key control across multiple parties.\
Benefits include:

* No single point of failure
* Decentralized control
* Compliance facilitation

> 🆚 Compared to mnemonic keys, AA and MPC offer superior security and operational flexibility.

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#### 🕵️‍♂️ Private State Management

Privax maintains a **local private state**, enabling **pluggable circuits** (algorithms) to compute proofs in an isolated environment.\
Only the **zero-knowledge proof** (ZKP) is exposed externally.

**Examples:**

* **DeFi Protocol Swap**: Circuit computes proof using a private input (e.g., passport data).\
  → Proof is used in on-chain swap, validated by smart contract.
* **Privacy-Preserving P2P Protocol**: Notes are processed to generate nullifiers and proofs.\
  → Ensures anonymity and double-spending prevention.

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#### 🔁 Advanced Payment Routing

Tokens like **USDC** exist on multiple chains. Users often lack balance or gas tokens on destination chains.\
Privax integrates **bridges** and **routing automation** inside the wallet, allowing:

* Seamless token bridging
* Automatic gas token top-up
* Refund and fallback handling

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#### ⛽ Gasless Transactions

Getting gas tokens is a major friction point.\
Privax enables **gasless UX** via:

* **Permit schemes** (meta-transactions)
* **Account Abstraction**
* **MEV-based relayers**

A **forwarder service** ensures users don’t need to manage or understand gas token mechanics.

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#### 💬 P2P Messaging & Identity System

Privax incorporates a **peer-to-peer encrypted communication layer** and identity framework for:

* Invoices
* Travel Rule compliance
* Payment metadata exchange

> 🔒 Ensures that all sensitive user data is securely shared between parties only.

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