> 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/the-problem-we-address.md). # The problem we address ### Overview In today’s blockchain landscape, a wallet is the main user gateway into the ecosystem. A typical wallet manages keys, updates balances, and earns from swaps by collecting small fees. However, this setup places the burden on users to understand the tech and troubleshoot issues on their own. For instance, if a user lacks SOL to send a SPL token, they’ll run into a “Not enough SOL for fees” error, which often leads to confusion. Another recurring challenge is handling assets across chains — users have to create new addresses, bridge tokens, and manage native gas tokens for each chain. On Solana, despite high performance and low fees, navigating wrapped tokens and different programs still requires technical know-how. Moreover, blockchain’s public ledger and pseudonymity introduce serious privacy concerns. Once an address is linked to someone, their entire history becomes visible. Privacy-enhancing tools could help, but their use is constrained by global regulatory pressure, as seen with Tornado Cash on Ethereum. Today’s modern privacy protocols attempt to embed **KYT** from the start, relying on zero-knowledge proofs and digital credentials — which demand new infrastructure to support zk-based transaction monitoring. *** ### 🚨 Key Problems * With 100+ chains out there, users are drowning in complexity. * Wallets still push technical responsibility onto the user. * Pseudo-anonymity isn’t enough. Once linked to an identity, on-chain privacy is permanently lost. * **KYT is not optional** — it’s the foundation for connecting DeFi with real-world finance. *** ### ✅ Draft Solution * **Smarter wallets** should abstract away complexity — not just show balances. * **Privacy** is a fundamental requirement for DeFi’s next evolution. * **KYT and privacy** can peacefully coexist — with zk-proofs, digital credentials, and encrypted compliance channels. *** --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## 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, and the optional `goal` query parameter: ``` GET https://privax-1.gitbook.io/privax-protocol/the-problem-we-address.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal. 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.