Solana’s Recent Upgrade Introduces Built-in Compatibility for Private Blockchain Transactions


Solana, the Layer 1 proof-of-stake blockchain, has recently rolled out its v1.16 update, introducing a groundbreaking feature called “Confidential Transfers.” This update enhances user privacy through encrypted SPL token transactions, marking a significant leap in Solana’s capabilities.

Confidential Transfers: Enhancing Privacy

Confidential Transfers, introduced by Token2022, allows users to conduct blockchain transactions without revealing crucial transaction details, such as transaction amounts. Utilizing zero-knowledge proofs, this feature encrypts the balances and transaction amounts of Solana Program Library (SPL) tokens, similar to ERC-20 tokens on Ethereum. It focuses on confidentiality, enhancing user privacy significantly.

Improved Zero-Knowledge Support

The v1.16 update not only enhances privacy but also improves Solana’s zero-knowledge support. The blockchain now natively supports a highly efficient elliptic curve (BN-128), reducing proof generation and verification costs substantially. This enhancement promotes better security and privacy features, bridging the compatibility gap with Ethereum.

Reduced Hardware Requirements

Additionally, this update reduces RAM usage hardware requirements for validators. Validators running on v1.16 require significantly less RAM, providing more efficient performance. This reduction enhances the network’s scalability and accessibility.

Other Notable Features

  • Refined Gossip Pull-Requests Peer Sampling System: Improves bandwidth constraint issues, ensuring faster performance for validators.
  • New Repair Request Feature: Assists validators in catching up faster if they fall behind the current network state.
  • Resizable Data Accounts: Allows better resource allocation, enabling developers to deploy programs with a smaller size and expand them later as needed.

It’s worth noting that not all features are live yet; they are gradually being rolled out via a feature gate system, activated at specific Solana epochs based on relative priority.


Solana’s v1.16 update, featuring Confidential Transfers and various performance enhancements, marks a significant milestone for the blockchain. With improved privacy, reduced hardware requirements, and streamlined processes, Solana is poised to deliver an even more efficient and secure user experience.

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