Privacy-Focused Cryptocurrency The price has recently spiked, prompting several blockchains to integrate the token into their ecosystems.
On October 16, Solana, the world’s second largest smart contract platform, launched a wrapped ZEC via the Zolana Bridge. However, these wrapped tokens function like standard Solana Program Library (SPL) tokens and do not offer the privacy protections inherent in native Zcash. They are backed 1:1 by native ZEC but do not hide balances or transaction data.
Encifher addresses this limitation by re-encapsulating tokens into crypto assets like eZEC, enabling private, encrypted trading on Solana using state-of-the-art fully homomorphic encryption (FHE). This technology ensures that sensitive transaction information remains hidden, restoring ZEC’s native privacy to the fast Solana network.
“To make ZEC truly private on Solana, it needs to be repackaged into crypto assets like eZEC, where balances and transfers are hidden, but composable with Solana DeFi. This is how the original vision of ZEC, asset-level privacy, can truly live on Solana,” said Encrypto.trade, Encifher’s social media manager, in an article on X.
Encifher uses strong encryption to hide user balances and transfer details on-chain. Transactions are secured and validated using zero-knowledge proofs, while sensitive data remains accessible only to authorized parties using threshold decryption protocols.
This approach encrypts customer balances with thresholded ElGamal encryption and stores the encrypted data off-chain in a secure data availability layer, while the Solana blockchain manages cryptographic pointers to these balances without exposing the actual values.
Think of EIGama encryption as a treasure chest that only opens when a certain number of trusted friends come together with their own special keys. This means that no friend can access the safe alone, ensuring added security.
The setup allows users to hold and transfer encrypted ZEC tokens confidentially, effectively transforming Solana’s public blockchain into a privacy-preserving environment that remains fully compatible with decentralized finance applications. The system prevents the ability to link transactions and address reuse by using ephemeral accounts that only exist for a single transaction lifecycle, thus making third-party analysis impossible.
So with Encifher, Solana users get a way to reclaim ZEC’s original promise of asset-level privacy on a blockchain known for its speed and low cost, connecting the best of both worlds.
Encifher’s privacy-preserving features have been implemented on Jupiter, Solana’s leading decentralized exchange, allowing users to trade crypto tokens while maintaining their privacy.
The price of ZEC surged 380% to $375 this month, according to CoinDesk data. According to some observers, the strong rally was catalyzed by the impending ZEC halving, the debut of Grayscale ZEC Trust and the listing of Hyperliquid.
