Cryptocurrency focused on privacy has recently skyrocketed in price, prompting multiple blockchains to integrate the token into their ecosystems.
On October 16th, Solana, the world’s second largest smart contract platform, launched wrapped ZEC via the Zolana Bridge. However, these wrapped tokens function as standard Solana Program Library (SPL) tokens and do not provide the privacy protections inherent to native Zcash. They are backed 1:1 by native ZEC, but balances and transaction data are not hidden.
Encifher addresses this limitation by re-wrapping tokens into crypto assets such as eZEC, enabling private crypto swaps on Solana through state-of-the-art Fully Homomorphic Encryption (FHE). This technology ensures that sensitive transaction information is hidden and restores ZEC’s inherent privacy on the high-speed Solana network.
“For ZEC to be truly private on Solana, it needs to be rewrapped into a crypto asset like eZEC, which can be configured with Solana DeFi while balances and transfers are hidden, so that ZEC’s original vision of asset-level privacy can actually live on on Solana,” Encifher’s social media handle Encrypto.trade said in a post on X.
Enciffer uses strong encryption to keep user balances private and transfer details on-chain. Transactions are secured and verified by zero-knowledge proofs, while sensitive data is only accessible to authorized parties using threshold decryption protocols.
This approach encrypts client balances using threshold ElGamal encryption and stores the encrypted data in an off-chain secure data availability layer. The Solana blockchain, on the other hand, handles cryptographic pointers to these balances without exposing their actual values.
Think of EIGama encryption as a treasure chest that can only be opened if a certain number of trusted friends come together with their own special key. This means your friend won’t be able to access the chest alone, providing added security.
This setup allows users to privately hold and transfer encrypted ZEC tokens, effectively transforming Solana’s public blockchain into a privacy-preserving environment that remains fully compatible with decentralized finance applications. By employing temporary accounts with a single transaction lifecycle, the system prevents transaction linkage and address reuse, making third-party analysis virtually impossible.
Therefore, with Enciffer, Solana users have the means to regain ZEC’s original promise of asset-level privacy on a blockchain known for its speed and low cost, bridging the best of both worlds.
Enciffer’s privacy protection features are implemented on Jupiter, Solana’s leading decentralized exchange, allowing users to trade encrypted tokens while protecting their privacy.
ZEC’s price has surged 380% this month to $375, according to CoinDesk data. According to some observers, this surge was fueled by the impending ZEC halving and the public debuts of Grayscale ZEC Trust and HyperLiquid.
Discover more from Earlybirds Invest
Subscribe to get the latest posts sent to your email.
