Developers on Solana have introduced “Confidential Balances,” a group of zero-knowledge (ZK) powered token extensions for confidentially shielding balances, transferring tokens, and minting or burning assets.
The Confidential Balances encryption technology builds on privacy functionality, which was introduced alongside Solana’s Token2022 test net framework in 2024.
Privacy is not a nice to have — it's fundamental.
Solana's new Confidential Balances is a compliance-friendly suite of discrete token extensions that enable apps to provide configurable privacy through confidential transfers, minting, burning, and auditing.
Now live on mainnet. pic.twitter.com/jEerppQQ0q
— Helius (@heliuslabs) April 8, 2025
Privacy Has Arrived On Solana With Helius Labs “Confidential Balances”
Helius, a prominent Solana infrastructure company, has been showcasing the capabilities of confidential transactions on Solana in an attempt to attract institutional activity.
Confidential Balances is a new technology from Helius. The official Solana account on X announced it as “the first ZK-powered encrypted token standard built for institutional compliance without sacrificing sub-second finality.”
Confidential Balances uses three new token extensions on Solana to enable more activities while retaining user privacy. This includes introducing encrypted balances and transfers, the ability to mint and burn tokens while keeping the total supply hidden from the public eye and also private fee handling.
Per the Helius blog post, the new functionality allows users to convert public token balances into a “confidential state,” privately transfer them to a recipient and revert these tokens to a public balance as needed.
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“All of these steps take advantage of homomorphic encryption and zero-knowledge proofs behind the scenes so that, while sums are hidden, the system can still verify correctness,” the Helius devs wrote in the blog.
On X, the developers state that Confidential Balances can be useful for financial use cases such as encrypted payroll services, business-to-business transactions, and other privacy-preserving applications.
The Confidential Balances functionality was introduced in June 2024 alongside Solana’s Token2022 framework, a suite of additional features and enhancements designed to broaden the capabilities of SPL tokens on the Solana blockchain.
Since its inception, the Helius devs have preferred to use the term ‘confidentiality’ over ‘privacy’, believing it better describes the Confidential Balances technology.
Solana’s native token, SOL, is currently trading at around $106 and has been down roughly 3% over the past 24 hours. This is despite a historic TradFi and crypto crash due to President Trump’s disastrous tariffs.
Solaxy (SOLX) Hits $29.5m In Presale Funding As The Leading Solana Layer-2 Solution
As Helius Labs has brought privacy to Solana, Solaxy (SOLX) is also enhancing the blockchain via an L2 solution that aims to improve performance across Solana.
It functions as a sister chain that takes transactions off-chain, processes them on Solaxy, and sends the completed transaction back to the Solana mainnet. By doing so, Solana will be faster, smoother, and more reliable even during network spikes when usage is high.
Via a developer blog from the Solaxy team just two weeks ago, the devs updated the community on what it has been working on. The key takeaways are as follows:
Soft Confirmations:
We have integrated a new sequencer implementation from the Sovereign SDK to support soft confirmations. This approach gives users a quicker confirmation that their transactions are valid before the rollup officially processes them. Thanks to the updated sequencer, a straightforward switch between basic and soft confirmation kernels is now possible.
Rollup Performance:
We are rolling out additional optimizations to transaction processing and continuing to collaborate with Sovereign on implementing a new caching mechanism. These improvements allow more transactions to be processed in a shorter time, boosting overall TPS. We are also refining serialization and deserialization steps to reduce unnecessary overhead in the flow.
Bridge UI:
We are working with Hyperlane to ensure our validator setup is properly configured, enhancing security even in testnet conditions. This will give users a more reliable experience and a flow closer to what they can expect in a production environment.
The Solaxy team isn’t messing around with its L2 efforts, and combined with Helius’ privacy-shielding Confidential Balances technology, Solana could finally have all of the tools required to finally live up to its name as the ‘Ethereum Killer’.
With the poor performance of ETH since 2022 and SOL recovering impressively to rebound from its $11 lows of three years ago, Solana could truly be poised to overtake Ethereum as the number two cryptocurrency and blockchain.
Follow Solaxy on X to stay updated, join the growing community on Telegram, and participate in what could be Solana’s next big breakthrough.
For more details, visit the Solaxy website
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Developers on Solana are building heavily regardless of market conditions with privacy tech and L2 solutions hitting the mainnet
- Helius Labs have developed privacy-shielding token functionality on Solana, named ‘Confidential Balances’
- Confidential Balances utilizes ZK rollup technology to keep transfers on Solana confidential
- Solaxy (SOLX) are another team building on Solana, with over $29.5m presale funding for its revolutionary Layer-2 solution
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