$SOL

[Helius demonstrates Solana upgrades and improvements]

Solana (SOL) has introduced a “confidential transfer” feature in its version 1.16 update to enhance the privacy of SPL token transactions. The update was developed by Solana Labs for 10 months and went live after being audited by blockchain security company Halborn.

Development platform Helius Labs noted that not all v1.16 features are enabled immediately. This update has been running on the Solana testnet before its official launch.

The secret transfer function led by Token2022 enhances Solana’s privacy. Users of this function can conduct transactions on the blockchain without disclosing transaction details such as amount. It relies on zero-knowledge proof and uses twisted ElGamal encryption and Sigma protocol to ensure security. However, the privacy feature remains controversial with global regulations, which may affect the acceptance of the Solana token in different regions.

In addition to privacy enhancements, version 1.16 also fixes inconsistencies and adds performance optimizations. In particular, the application of zero-knowledge proofs is enhanced and BN-128 elliptic curves are integrated to make proof generation and verification more efficient. Additionally, this update brings Solana’s smart contracts closer to Ethereum compatibility.

For validators, this update reduces memory usage, optimizes bandwidth management, and provides a fix request feature to help validators synchronize their networks. In addition, developers can now use adjustable data accounts for increased deployment flexibility.

These new features will be gradually rolled out in specific Solana eras to ensure the stability of network operations.