Elusiv x Token2022: Achieving Confidentiality and Privacy
Solana’s Road to Privacy
Solana embodies the essence of innovation and development. A driven community of developers combined with the Solana Foundation’s hands-on stewardship helps optimize the entire ecosystem’s advancement. The Token2022 program is a prime example of this progress. This program is designed to enhance the current Token Program on Solana by adding new features to increase token functionality through extensions. Extensions enable token creators and developers to tailor different aspects of a token’s capabilities.
One of the extensions deployed via the Token2022 program is called ‘Confidential Transfers.’ This extension addresses privacy concerns on-chain, a pervasive and complex issue throughout the entire Web3 space. Confidential Transfers effectively encrypt token balances and transfer amounts using zero-knowledge proofs. Beyond improving privacy for on-chain activity, this extension helps standardize privacy within the ecosystem, allowing easy integration of encryption for a token by default.
Understanding Confidential Transfers vs. Private Transfers
Privacy is a crucial pillar for blockchains to reach mass adoption. Confidential Transfers takes a significant step in this direction, especially when combined with the performance and affordability provided by Solana. However, for builders and users, highlighting how comprehensive the privacy guarantees enabled by this extension are vital. Privacy, in this case, is applied to token balances and amounts. It does not encrypt the associated public key, meaning all on-chain activities and interactions still link to a user’s public address.
For example, suppose one is sending a token fitted with this extension to a business partner. In this case, Confidential Transfers encrypt the amount you send, but the interaction is broadcasted to the whole chain. However, private transfers, like the ones enabled by Elusiv, encrypts the public key associated with a specific token, providing complete privacy for the user.
Privacy is about people, and confidentiality is about information.
Token2022 x Elusiv: Privacy’s Ultimate Combo
Confidential Transfers and Elusiv’s comprehensive privacy guarantees are exciting developments for the Solana ecosystem. First, tokens can be primed via the Confidential Transfers extension and used in Elusiv to provide full privacy for both the sender and the amount. In addition, the standardization of Confidential Transfers across different tokens substantially increases privacy guarantees for all tokens used on Elusiv (or any wallet and application that has integrated the Elusiv SDK). From this perspective, consolidating token standards and application-level zero-knowledge technology spearheads the privacy dilemma.
The future is more than bright
The Token2022 program is necessary for the ecosystem’s growth and evolution. Since tokens represent the mechanism in which value creation can be expanded, upgrading token standards is fundamental to unlocking new use cases and capabilities for users, developers, and communities.
With Token2022 in place and the expansion of Elusiv’s feature set coming to fruition, so do the possibilities for even more robust privacy. As Elusiv rolls out more features, including an innovative zero-knowledge-powered compliance system, privacy guarantees will become holistic and compliant. With the parallel development of standardized encryption at the network level and the expansion of robust zero-knowledge features at the application level, uncompromisable privacy is achieved.
