> For the complete documentation index, see [llms.txt](https://hinkal-team.gitbook.io/hinkal/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://hinkal-team.gitbook.io/hinkal/protocol/core-concepts.md).

# Core Concepts

Hinkal adds a private balance to the wallet you already have. Your public wallet stays your identity and your key; Hinkal is a smart contract on the same chain that holds funds you control but that nobody can attribute to you on-chain.

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#### **How a private balance works, end to end**

1. **Connect a wallet and sign once**\
   The signature deterministically restores your Hinkal identity and viewing keys - nothing new to store or back up.
2. **Receive funds into your private balance**\
   Senders compute a one-time stealth address for you and create UTXOs in the system. Only you can discover and spend them.
3. **Spend or swap privately**\
   Your wallet proves in zero knowledge that you own certain UTXOs and that outputs conserve value, without revealing which notes were spent.
4. **Nothing links back to your public wallet**\
   Your EOA is never tied to private inflows or outflows; only commitments, nullifiers, and Merkle roots are visible on-chain.

[→ For the cryptography behind each step, see Cryptographic Setup](/hinkal/protocol/setup.md)