Speedrun: Privacy on Avalanche

Hosted by Team1 India | Open to builders in India only

What is Speedrun?

Speedrun is a focused build sprint where developers ship a working prototype around a single theme. Each cycle drops a technical challenge, a clear goal, and a set of starting ideas. You pick a direction, build fast, and demo live. The mission is simple: build, ship, show.

Theme: Privacy on Avalanche Public chains show everyone everything. Great for trust, rough for payroll, trading desks, cap tables, and anything with a number you'd rather not broadcast to your competitors.

Avalanche gives you two ways to fix that, and they stack on top of each other:

eERC (Encrypted ERC): a privacy-preserving, ERC-20-style token standard from AvaCloud. Balances and transfer amounts are encrypted on-chain using zk-SNARKs (Groth16) and ElGamal encryption, so the ledger stays public but the numbers stay hidden. Proofs are generated client-side, everything settles fully on-chain with no relayers, and rotatable auditor keys let a regulator decrypt when compliance demands it. Run it standalone (a brand-new private token, with optional hidden supply) or in converter mode (wrap an existing ERC-20 and flip between public and private). Ships with a TypeScript SDK and runs on C-Chain, Fuji, and custom L1s.

Private Chains (Avalanche L1s): your own sovereign blockchain where you decide who reads and who writes. A permissioned L1 can restrict RPC access so only approved participants see any data, and gate transactions behind an allowlist or a KYC precompile. You pick the validator set, the gas token, and the rules of the chain. Since the Etna upgrade, running an L1 validator costs a flat ~1.33 AVAX per month with no requirement to validate the Primary Network, so spinning one up is cheap. Tooling: avalanche-cli, the L1 Toolbox, and Subnet-EVM.

Think of it as two kinds of privacy. eERC hides the data on an open chain. A private L1 hides the whole chain behind a wall. Use either. Use both.

Goal

Ship a working prototype that keeps value or data confidential on Avalanche, using eERC, a private/permissioned L1, or both. You should walk away with something demoable: real value or real data moving on-chain with the sensitive parts hidden from everyone who shouldn't see them. Bonus points for combining both primitives, confidential eERC tokens running on a permissioned chain, so you get encrypted amounts and gated access at the same time.

Ideas

These are starting points, not requirements. Pick one, remix it, or bring something entirely your own. We actively encourage out-of-the-box builds.

Confidential Tokens

Private Payroll (beginner friendly): pay salaries or contractor invoices in eERC so the amounts never hit the public ledger. Each person sees their own balance, nobody sees anyone else's. Private Chain: deploy it on a permissioned L1 so only the company and its employees can even reach the RPC.

Shielded Stablecoin Transfers: take an existing ERC-20 stablecoin, run it through eERC converter mode, and send confidential peer-to-peer payments that flip back to public whenever you want. Private Chain: restrict the chain to an allowlist of verified members for a closed payment network.

Private DeFi

Confidential OTC Desk: let two parties settle a large trade in eERC without leaking the size to the market or to front-runners. Private Chain: host the desk on a permissioned L1 so only vetted counterparties can connect.

Sealed-Order Book: an order book where amounts stay encrypted until settlement, killing the information leak that public DEXs hand straight to MEV bots. eERC hides the amounts. A private L1 controls who gets to place an order.

Compliance-Friendly Privacy

Auditor-Ready Treasury: a company treasury where balances and payments are hidden from the public, but a rotatable auditor key lets a regulator or accountant verify everything on demand. This is eERC's whole pitch: privacy that still passes an audit.

KYC-Gated Chain (beginner friendly): stand up a permissioned L1 with a KYC allowlist precompile so only verified wallets can transact, then issue eERC tokens on top. Privacy plus a paper trail, the exact combo institutions ask for before they touch a chain.

Real-World Assets

Private Cap Table: tokenize shares, fund units, or an asset, and keep ownership and transfer amounts confidential with eERC while the registry still lives on-chain. Private Chain: run it on a permissioned L1 so only the issuer, the holders, and the regulator get access.

Confidential B2B Settlement: settle invoices between businesses where the amounts are commercially sensitive. eERC hides the figures. A private L1 keeps the whole supplier network walled off from competitors.

Spin Up a Private Chain

Your First Permissioned L1 (beginner friendly): use avalanche-cli to launch an L1 with restricted RPC and a transaction allowlist, then deploy a simple app that only approved wallets can touch. The fastest way to feel what access privacy actually means. eERC: add confidential tokens once the chain is live.

Jurisdiction-Aware Chain: build an L1 that enforces validator or user rules by region (KYC checks, geofencing, license requirements) for a compliance-bound use case. Pair it with eERC so the data stays private even inside the permissioned set.

Just for Fun

Sealed-Bid Auction: bidders submit encrypted bids in eERC, nobody can see the competition, and the winner gets revealed at the close. A clean demo of why hidden amounts matter.

Private Gifting: send a tip, a gift, or a bonus in eERC so the amount stays between sender and receiver. No public record of who got how much.

Start Small and Have Fun

These are not meant to be heavy builds. They're simple starting points to spark ideas and get you moving. Pick something you enjoy, keep it lightweight, and take it in your own direction. The goal is to start building with privacy on Avalanche and have fun, not to ship something massive.

What to Submit

A working prototype deployed on Avalanche, with a live demo showing confidential value or data moving on-chain. That means encrypted eERC transfers, a working permissioned/private L1, or both.

Build and demo on Fuji, the Avalanche C-Chain testnet, using free test AVAX from the faucet. No real funds needed. If you launch a custom L1, run it on testnet.

Building on an existing project is welcome. You can submit an older project as long as you clearly define what existed before this Speedrun and what new features or upgrades you added for it. We judge what you ship here, so make the delta obvious.

Deploying to Avalanche mainnet is optional and earns bonus points.

To get started: the eERC contracts and circuits live in the ava-labs/EncryptedERC repo, with a full walkthrough on the Avalanche Builder Hub. For private chains, start with avalanche-cli and the L1 Toolbox. Reminder, the ideas above are inspiration, not a checklist. Original, out-of-the-box builds are strongly encouraged.

Resources

Start here

• eERC course (Avalanche Builder Hub). End-to-end walkthrough of the standard, from how it works to deploying your own private token.
• Builder Console. Deploy an eERC token or spin up an L1 from the browser, no local setup. Look for "Encrypted ERC > Deploy Your Own" and "Create L1" in the sidebar.
• Create your first L1 with avalanche-cli. The step-by-step CLI guide.

eERC (Encrypted ERC)

• Contracts and circuits (Solidity + Circom). Standalone and converter modes, deploy scripts included.
• eERC SDK (TypeScript). Handles key generation, proof generation, and balance encryption/decryption. On npm as @avalabs/ac-eerc-sdk.
• What eERC is and why it exists (AvaCloud announcement). Good background for your pitch.

Private chains (Avalanche L1s)

• Avalanche L1s overview (docs). Sovereign chains, custom gas tokens, validator sets, precompiles.
• Private and permissioned blockchains (academy). The access-privacy vs data-privacy breakdown and how to restrict RPC.
• Permissioned L1s course. Proof of Authority and the Validator Manager contract.
• avalanche-cli. The CLI for creating and deploying L1s. Install guide here.
• Subnet-EVM. Avalanche's EVM fork with stateful precompiles for allowlists, fee config, and KYC enforcement.
• Evergreen. The institutional framework for permissioned, compliance-ready L1s.

Testnet and tools

• Fuji faucet (free test AVAX).
• Fuji C-Chain: RPC https://api.avax-test.network/ext/bc/C/rpc, Chain ID 43113, explorer testnet.snowtrace.io.
• Avalanche Starter Kit. Hardhat plus a ready Codespace so teams can start in minutes.

Timeline

1st July to 18th July, Registration, Build and submit: Registration opens and the build window runs. Sign up, lock your team, and start building.

Connect

• Team1 India Telegram
• Team1 India WhatsApp