Solana (SOL), a layer 1 proof-of-stake blockchain, has launched model 1.16, which boosts person privateness by “Confidential Transfers.” This replace contains encrypted Solana Program Library (SPL) token transactions, making certain confidentiality quite than anonymity.
The adoption of model 1.16 by Solana’s community of validators has reached a majority after ten months of improvement and an audit by Halborn, a blockchain safety agency.
Solana Labs Rolls Out Privacy-Enhancing Update
According to the announcement made by Solana’s infrastructure supplier Helius, The replace has undergone rigorous testing, with v1.16 operating on testnet since June 7, 2023.
Volunteer and canary nodes have reportedly performed a vital position in figuring out and resolving points in the course of the testing part. Solana Labs has additionally deployed canary nodes on mainnet-beta to observe the steadiness of v1.16 beneath real-world situations.
Solana employs a characteristic gate system to stop consensus-breaking modifications, making certain that validators operating older variations don’t fork off the canonical chain.
What’s extra, Consensus-breaking modifications now require a Solana Improvement Document (SIMD) and better transparency by documentation.
Confidential Transfers, launched by Token2022, make the most of zero-knowledge proofs to encrypt balances and transaction quantities of SPL tokens, prioritizing person privateness.
Looking forward, Solana Labs plans to undertake a extra agile launch cycle, focusing on smaller releases roughly each three months.
Room For Growth
According to a Nansen report, Solana has witnessed a major surge in its Total Value Locked (TVL) all through this 12 months, almost doubling because the starting of 2023, and at the moment boasting a TVL of 30.95 million SOL.
Monthly transactions on the Solana community have remained comparatively steady, with a rise in vote transactions, encompassing each vote and non-vote transactions.
Furthermore, Nansen highlights that Solana has applied modern options corresponding to state compression and remoted charge markets to deal with distinguished points inside its tech stack.
One notable resolution, state compression, has considerably decreased the price of non-fungible token (NFT) minting on Solana greater than 2,000 occasions.
State Compression Unleashes Affordable NFT Minting
For occasion, the price of minting 1 million NFTs earlier than the introduction of state compression would have amounted to roughly $253,000. In distinction, with state compression enabled, the fee is considerably decreased to simply $113.
In comparability, minting an analogous assortment measurement on Ethereum would price roughly $33.6 million, and on Polygon, it will quantity to round $32,800.
Furthermore, the liquid staking panorama on Solana is experiencing fast progress, with main platforms like Marinade Finance, Lido Finance, and Jito taking the forefront.
However, regardless of this progress, the present quantity of staked SOL in Solana’s liquid staking protocols accounts for lower than 3% of the whole staked SOL, indicating substantial room for growth.
It is value noting that the report by Nansen raises issues in regards to the uncertainty surrounding FTX/Alameda’s SOL holdings, as FTX holds over 71.8 million SOL, representing roughly 17% of the circulating provide and 13% of the whole provide.
While this example might current short-term dangers to Solana’s progress trajectory, it’s important to observe its impression intently.
On the opposite hand, the native token of the protocol, SOL, continues to exhibit substantial positive factors throughout all timeframes. The token is buying and selling at $23.68, reflecting a rise of over 4% prior to now 24 hours.
Featured picture from Shutterstock, chart from TradingView.com