Privacy-focused cryptocurrency has recently increased in price, prompting several blockchains to integrate the token into their ecosystems.
On October 16, Solana, the world’s second largest smart contract platform, launched wrapped ZEC via the Zolana bridge. However, these wrapped tokens act as standard Solana Program Library (SPL) tokens and do not offer the privacy protections inherent to native Zcash. They are supported 1:1 by native ZEC, but do not hide balances or transaction data.
Encifher addresses this limitation by repackaging tokens into encrypted assets like eZEC, enabling private, encrypted swaps on Solana through pioneering fully homomorphic encryption (FHE). This technology ensures that sensitive transaction information remains hidden, restoring ZEC’s original privacy on the high-speed Solana network.
“To truly make ZEC private on Solana, it should be repackaged into encrypted assets like eZEC, where balances and transfers are hidden, yet composable with Solana DeFi. This is how ZEC’s original vision, asset-level privacy, can actually live on Solana,” said Encifher’s social media handle Encrypto. X.
Encifher uses powerful encryption to hide user balances and transfer details on-chain. Transactions are secured and validated through zero-knowledge proofs, while sensitive data remains accessible only to authorized parties using threshold decryption protocols.
This approach encrypts client balances with threshold ElGamal encryption and stores the encrypted data off-chain in a secure data availability layer, while the Solana blockchain handles cryptographic pointers to these balances without revealing the actual values.
Think of EIGama encryption as a treasure chest that only opens when a certain number of trusted friends come along with their own special keys. This means that no single friend can access the chest alone, which ensures extra security.
The setup allows users to securely store and transfer encrypted ZEC tokens, effectively transforming Solana’s public blockchain into a privacy-preserving environment that remains fully compatible with decentralized finance applications. The system prevents transaction linkability and address reuse by using short-lived accounts that only exist for the life cycle of one transaction, making analysis by third parties effectively impossible.
So with Encifher, Solana users get a means to reclaim ZEC’s original promise of asset-level privacy on a blockchain known for speed and low cost, bridging the best of both worlds.
Encifher’s privacy-preserving features have been implemented on top of Jupiter, Solana’s leading decentralized exchange, enabling users to trade encrypted tokens while maintaining their privacy.
ZEC’s price has risen 380% to $375 this month, CoinDesk data shows. According to some observers, the sharp rally has been catalyzed by the impending ZEC halving, the debut of the Grayscale ZEC Trust and the Hyperliquid listing.
