A privacy-enhancing feature implemented on the Liquid Network that blinds both the amount and the asset type being transferred, keeping them hidden from everyone except the two parties involved in a transaction while allowing nodes to verify and process it securely. CT is particularly valuable for businesses and individuals who want to transact without revealing sensitive financial information to the public.
On blockchains where transaction amounts and asset types are publicly visible, positions and balances can be read by anyone, allowing for the possibility of being front-run and increasing the risk of liquidation. For example, if a liquidation price is visible on-chain, other market participants can see the level at which a position would be closed.
Learn more about CT by reading the Liquid documentation available here.