A new update to Ethereum (ETH) competitor Solana (SOL) has enabled confidential transfers for the project’s token standard.
Solana’s network of validators was able to reach a supermajority, approving the adoption of Solana’s v1.16 update after nearly 10 months of development and testing.
-->The update includes the rollout of confidential transfers for SPL tokens, the token standard for Solana network tokens (like ERC-20 tokens for Ethereum), according to a recent press release from Helius, a Solana developer platform.
Confidential transfers will use zero-knowledge (ZK) proofs to encrypt the balances and transaction amounts of SPL tokens.
Explains Helius,
“The primary focus of this feature is to improve user privacy through a renowned emphasis on confidentiality rather than anonymity.
Confidential transfers leverage Twisted ElGamal Encryption for mathematical operations on the encrypted amounts. These transfers are validated using Sigma Protocols, a specialized category of zero-knowledge proofs where one party (the prover) can demonstrate to another party (the verifier) that they know of a certain secret without actually disclosing the secret itself.”
Solana’s native token, SOL, is trading at $22.19 at time of writing. The eighth-ranked crypto asset by market cap is down nearly 6 in the past 24 hours and more than 4 in the past seven days.
