The full Litepaper is available to view here.
The privacy Obscuro provides can be split into transactional and computational privacy.
Transactional privacy is the ability to maintain privacy over transactions on the L2. For example, keeping user token balances, participants of a transaction and the amounts transferred private is the main use of transactional privacy.
This is the problem that ZKP-based privacy protocols such as Z-Cash solve.
Obscuro provides transactional privacy and keeps token contract calls entirely confidential by encrypting transactions from the point of origination, the wallet.
In addition to transactional privacy, Obscuro also provides a much deeper form of privacy known as computational privacy. This is complete and absolute privacy over the entire computation of smart contracts and the network.
With computational privacy, it’s possible to keep inputs and outputs from contracts private and any logic executed within the smart contract. This opens up huge possibilities across DeFi, NFTs, Gaming, DAOs, the Metaverse and things yet to come.