The beauty of EncryptedERC lies in the ability to hide token balances on a public ledger, but in order to achieve this we rely on ZK proofs and private keys.
Each receiver of an EncryptedERC token must be registered using a set of public and private keys. Since WWIIInu requires smart contract to receive the encrypted tokens, and since smart contracts don't have their own private keys, the contracts had to be registered using the keys of an EOA account.
Once the contracts are registered, you then need to use those keys to decrypt the balances in the contract, which is where the Waracle comes in.
The Waracle securely stores the private keys used to register the bunker contracts, and uses those keys when [processing each round](/wwiiinu/the-basics/round-resolution.md).
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