Solana, the Layer 1 proof-of-stake blockchain, has quietly rolled out its version 1.16 update, introducing “Confidential Transfers” that bring native support for private blockchain transactions. This groundbreaking update enhances user privacy by encrypting SPL token transactions, offering a level of confidentiality previously unavailable.
The v1.16 update, developed over ten months and audited by blockchain security firm Halborn, achieved widespread validator adoption, reaching a super-majority. It has been running successfully on the testnet since June, and its release marks a significant milestone for Solana.
The highlight of this update is the introduction of Confidential Transfers, powered by Token2022. This new token program revolutionizes Solana’s token functionality, enabling users to conduct blockchain transactions without revealing sensitive transaction details, such as the transaction amount.
Piotr Cielas, Director of Enterprise Security at Halborn, noted that version 1.16 not only brings performance optimizations and stability improvements but also enhances Zero-Knowledged Proof capabilities natively within Solana. This feature significantly reduces proof generation and verification costs, making it interoperable with Ethereum smart contracts.
Confidential Transfers employ zero-knowledge proofs, utilizing Twisted ElGamal Encryption on the encrypted amounts, and Sigma Protocols for secure confirmation, ensuring privacy without anonymity.
Besides privacy enhancements, Solana’s v1.16 update brings other notable benefits. It improves zero-knowledge support, streamlines verification processes, and reduces RAM usage requirements for validators, making it more efficient and accessible.
Additionally, this update introduces a refined gossip pull-requests peer sampling system and a repair request feature, addressing bandwidth constraints and network synchronization issues.
Solana’s resizable data accounts feature allows developers to deploy programs with smaller sizes and expand them as needed, optimizing resource allocation.
It’s important to note that not all features are live yet, as they are gradually rolled out via a feature gate system, with activation scheduled at specific Solana epochs based on relative priority. These updates position Solana as a frontrunner in the blockchain space, offering enhanced privacy and improved functionality for users and developers alike.
