Helius, the developer of the Solana platform, has announced the launch of a Confidential Balances feature aimed at improving blockchain privacy and attracting institutions to cryptocurrency.
Milestone for Institutional Adoption
The launch of the Confidential Balances feature, which is already available on the Solana mainnet, provides token issuers with a broad toolbox to hide institutional transaction details. All information remains legally compliant through the use of homomorphic encryption and zero-knowledge proofs (ZKPs).
*“With the launch of Confidential Balances on Solana, developers can enable encrypted token balances and transfer amounts, while maintaining Solana’s performance advantages.”*
Improvement of Confidential Transfers Feature
The launch of Confidential Balances marks a significant step for the Solana network, which is striving to meet the rising demand for privacy among decentralized finance (DeFi) users. The new protocol enhances the previously existing Confidential Transfers feature, minimizing the risk of abuse by malicious players.
Onchain Privacy and Auditability
The new launch includes an optional 'auditor keys' mechanism that allows regulators and institutions to review transactions without revealing details to the general public. This mechanism will be beneficial for institutional users, whose compliance obligations for AML, CTF, and tax reporting require a degree of transparency while maintaining confidentiality.
The launch of Confidential Balances is a significant achievement in institutional engagement with cryptocurrency, offering new opportunities for businesses that value privacy.
