New on Solana: Confidential Tokens

Surprisingly, almost no one’s talking about this: Solana now supports tokens with confidential balances and confidential transaction amounts.

This means when you create a token smart contract, you can enable a privacy feature that hides the amount of every transaction. What remains visible on-chain is:

• the sender’s address
• the recipient’s address
• the block in which the transaction was confirmed
• the token itself (via its smart contract address)

But what’s hidden:

• the number of tokens transferred
• the sender’s current token balance
• the recipient’s token balance

AFAIK, no one has implemented anything quite like this before. Until now, crypto has generally offered either:

• complete transparency (everything is visible to everyone), or
• complete privacy (nothing is visible unless you hold a key)

This, though, is a fascinating hybrid - a blend of transparency and confidentiality. And honestly, I think it’s a concept that could see real demand. It’s surprising how little buzz there is around it.

While Solana is still the only chain to offer this kind of functionality, it gives $SOL a whole new use case - you’ll need it to create and interact with these next-gen tokens.

Interested in the idea? You can swap any crypto for SOL on rabbit.io.
And don’t worry – I won’t tell anyone how much of what you gave me, or how much SOL you got in return 😉