Solana introduces “Zero-Knowledge Validation” through confidential balances
- Solana’s “Confidential Balances” improve data protection by hiding details of transactions, but creating the data access necessary for the validators.
- New JavaScript tools bring private transactions to mobile wallets expanding user access beyond developers.
Solana introduced the data protection-friendly upgrade “Confidential Balances”, with which sensitive transaction details are hidden on the chain while the Validierer access is preserved at the same time.
As CNF reported, the introduction is a step to protect customers’ data and at the same time offer institutional transparency. Since transaction amounts, embossing, burning and fitting details are now hidden from the public, developers and organizations can work with confidential data without removing them from the blockchain.
Introducing Confidential Balances Token Extensions
Confidential Balances are now live on Solana mainnet — the first ZK-powered encrypted token standard built for institutional compliance without sacrificing sub-second finality.
Everything devs need to know
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— Solana Developers (@solana_devs) April 8, 2025
This change comes at a time when tools are increasingly in demand to protect privacy in Defi and blockchain applications.
The Confidential Balances function builds on the former Solana framework “Confidential Transfers” from the TOKEN2022 program. The latest fashion expansion builds on the previous version and offers protection during the embossing and burning process and the disclosure of transaction fees. The updated functionality enables the safe storage of data on the blockchain platform with hidden value movement data.
The development is intended to tackle the problem of public blockchains that disclose all transaction details by default. In contrast to Bitcoin or Ethereum, in which a user can easily view the amount of the transaction and the parties involved, the Solana system currently offers more anonymity without having to switch to a private chain. However, data can be made on the blockchain if necessary.
Compliance with legal regulations by auditor keys
Solana has integrated Auditor Keys into the Confidential Balances System in order to reconcile privacy with regulatory requirements. These keys enable institutions such as supervisory authorities, tax authorities or financial partners to check transactions without making the information available to the public. Access is entitled to ensure that only trustworthy parties can view confidential data.
The model offers blockchain projects a solution to meet international AML regulations as well as tax transparency and CTF requirements and at the same time maintain the privacy of users. Organizations can select the implementation of the revision key based on their specific compliance requirements via the revision key option.
So far, Solana has only offered the functions of confidential balances through its rust-based toolchain, which made them only available for backend systems and developer environments. The development of new libraries that use JavaScript and Zero Knowledge Proofs is planned for future versions. User devices that are equipped with these tools will enable mobile and browser wallet functions for carrying out private transactions by creating evidence on the device hardware.
Through these changes, solutions to protect privacy are accessible to everyday users who are no longer dependent on central services or programming knowledge in order to surf privately.
Market cutout: Solana slips in the middle of general volatility
Despite the technical update, the price of the native token of Solana (SOL) has dropped by 2.68 % in the past 24 hours and is now noted at $ 105.78. The daily trade volume has decreased by more than 26 %, which indicates a lower activity of the investors. The market capitalization of the token is $ 54.54 billion, with a fully watered assessment of $ 63.27 billion.
The downward movement of the Solana Prize took place at the same time with a larger market volatility, which led to a temporary decline to $ 102 before the price rose again minimally. New technological innovations on the market are negatively influenced by the prevailing market conditions.
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