> For the complete documentation index, see [llms.txt](https://docs.silopay.io/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.silopay.io/silo-101.md).

# Silo 101

#### **What Silo Is**

Silo is a non-custodial crypto payments platform. It allows users to send and receive cryptocurrency using a single username, with transactions kept private from public blockchain observers and compliance checks enforced automatically in the background. Users connect their existing wallets to Silo and maintain full control of their funds throughout the process.

The user experience is simple: the sender enters a username and a dollar amount, then confirms the transaction. Silo reads the receiver's saved preferences and handles asset conversion, chain routing, bridging, and privacy automatically. The receiver gets paid in their preferred asset, on their preferred chain, to their chosen wallet. Neither party needs to share wallet addresses, coordinate chains, or perform any manual steps beyond the initial send.

***

#### **How Silo works**

Crypto payments typically require the sender to know the receiver's wallet address, which chain they're on, and which asset they want and sharing that address exposes the receiver's full balance and transaction history to anyone who looks it up. Silo eliminates both problems.

Silo replaces wallet addresses with a single username that works across all supported chains. Each user sets up receiver preferences once: their preferred asset, preferred chain, and destination wallet. Every payment sent to that username is automatically routed according to those preferences, regardless of what the sender is paying with or which chain they are sending from.

Privacy is applied by default to every transaction. Silo uses shared vaults and zero-knowledge proofs to break the on-chain link between sender and receiver. Public blockchain observers cannot determine who paid who. Neither party sees the other's wallet address or transaction hash. Both parties receive a redacted receipt that confirms the payment occurred without exposing private details.

Compliance is built into the transaction flow. Every transaction passes through sanctions screening and risk checks before it is facilitated. Silo maintains an encrypted audit trail (called a Payment Instruction) behind every transaction that can support disputes, audits, and regulatory requirements. Users interact with a three-tier verification system where higher verification unlocks lower fees and higher transaction limits, while unverified users can still transact within defined thresholds.

***

#### **Non-custodial**

Silo does not custody user funds. Users connect their own wallets and maintain full control throughout the payment process. Withdrawals require the receiver's wallet signature. Silo cannot move funds on a user's behalf. Silo's role is limited to facilitating payment routing and privacy. For a detailed explanation of how funds move through the shared vault, see Shared Vaults.

***

#### **Where to Go Next**

For a detailed walkthrough of usernames and receiver preferences, see [Usernames & Receiver Preferences](/how-silo-works/usernames-and-receiver-preferences.md). For the technical payment flow, see [Payment Flow](/how-silo-works/payments-flow.md). For a deeper explanation of the privacy model, see [Privacy Model](/privacy/privacy-model.md). For compliance details, see [Three-Tier System](/compliance/three-tier-system.md).<br>


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