Solana has launched Confidential Balances, a feature designed to bolster privacy for on-chain transactions while preserving the platform's speed.
Solana has launched Confidential Balances, a feature designed to bolster privacy for on-chain transactions while preserving the platform's speed. Developed by Helius, Solana's infrastructure team, this update utilizes zero-knowledge (ZK) technology to enable users and institutions to keep their token balances, transfers, minting, and burning activities confidential.
This new feature builds on the previously introduced Confidential Transfers under the Token2022 framework and incorporates three main elements: it masks the amounts being sent in transactions, keeps fee deductions private, and allows projects to hide the number of tokens they create or destroy.
With Confidential Balances, users can switch their public token balances to private ones, facilitating anonymous transfers without revealing the transaction amounts. The underlying technology relies on homomorphic encryption and zero-knowledge proofs, ensuring that while specific figures remain concealed, the integrity of the overall data on the network is upheld.
Currently, this feature supports Rust-based backends, with wallet integrations expected soon. In the interim, third-party “Wallets-as-a-Service” providers will assist with the complexities of encryption and proof generation.
Additionally, Solana developers are working on JavaScript ZK libraries, expected to be released later this year. These libraries will simplify the integration of privacy features into browser wallets and mobile applications, allowing users to generate proofs directly within their wallets without the need for external backends.
Confidential Balances represents a strategic initiative for projects prioritizing privacy, particularly in industries such as payroll and B2B payments. The inclusion of audit keys also addresses compliance needs, enhancing the functionality of these new features in various business environments.
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