Private contracts are an out-of-the-box feature provided by Quorum for enabling data privacy. Private contracts are used for sharing information privately between two or more nodes without other nodes being able to see it.
Let's look at what private contracts in Quorum are. Contracts that are deployed using private transactions are called private contracts. A private transaction is basically one whose payload (contract code for contract deployment or function arguments for calling functions, the data part of transactions) is shared point to point, outside of blockchain between a selected list of peers mentioned at the time of sending the transaction, and the hash of the payload is recorded in the blockchain by replacing the actual payload with the hash of the payload. Now, the nodes in the network check whether they have the content that hashes to the hash present in the blockchain as payload, and if yes, then they execute the original payload. Quorum...