Token Ecosystem

Confidential Transfers

A Token-2022 extension that uses zero-knowledge proofs (Twisted ElGamal encryption over Ristretto255) to hide transfer amounts while keeping the token mint and accounts public. Balances are stored in encrypted form with separate 'pending' and 'available' pools. The account owner can decrypt their balance but others cannot see amounts.

IDconfidential-transfersAliasCT

Plain meaning

Start with the shortest useful explanation before going deeper.

A Token-2022 extension that uses zero-knowledge proofs (Twisted ElGamal encryption over Ristretto255) to hide transfer amounts while keeping the token mint and accounts public. Balances are stored in encrypted form with separate 'pending' and 'available' pools. The account owner can decrypt their balance but others cannot see amounts.

Mental model

Use the quick analogy first so the term is easier to reason about when you meet it in code, docs, or prompts.

Think of it as a building block that connects one definition to the larger Solana system around it.

Technical context

Place the term inside its Solana layer so the definition is easier to reason about.

SPL assets, token standards, metadata, and NFT primitives.

Why builders care

Turn the term from vocabulary into something operational for product and engineering work.

This term unlocks adjacent concepts quickly, so it works best when you treat it as a junction instead of an isolated definition.

AI handoff

AI handoff

Use this compact block when you want to give an agent or assistant grounded context without dumping the entire page.

Confidential Transfers (confidential-transfers)
Category: Token Ecosystem
Definition: A Token-2022 extension that uses zero-knowledge proofs (Twisted ElGamal encryption over Ristretto255) to hide transfer amounts while keeping the token mint and accounts public. Balances are stored in encrypted form with separate 'pending' and 'available' pools. The account owner can decrypt their balance but others cannot see amounts.
Aliases: CT
Related: Token-2022 (Token Extensions), Zero-Knowledge Proofs (ZKP)
Glossary Copilot

Ask grounded Solana questions without leaving the glossary.

Use glossary context, relationships, mental models, and builder paths to get structured answers instead of generic chat output.

Explain this code

Optional: paste Anchor, Solana, or Rust code so the Copilot can map primitives back to glossary terms.

Ask a glossary-grounded question

Ask a glossary-grounded question

The Copilot will answer using the current term, related concepts, mental models, and the surrounding glossary graph.

Concept graph

See the term as part of a network, not a dead-end definition.

These branches show which concepts this term touches directly and what sits one layer beyond them.

Branch

Token-2022 (Token Extensions)

The next-generation token program (TokenzQdBNbLqP5VEhdkAS6EPFLC1PHnBqCXEpPxuEb) that extends SPL Token with configurable extensions. Extensions include transfer fees, confidential transfers, transfer hooks, permanent delegate, non-transferable tokens, interest-bearing tokens, metadata, and more. Token-2022 is backwards-compatible with SPL Token for basic operations.

Branch

Zero-Knowledge Proofs (ZKP)

A zero-knowledge proof is a cryptographic protocol by which a prover convinces a verifier that a statement is true — for example, that a state transition is valid — without revealing any information beyond the truth of the statement itself, satisfying the properties of completeness, soundness, and zero-knowledge. In Solana's ecosystem, ZKPs are used by ZK Compression (via Groth16 SNARKs) to prove correct state transitions for compressed accounts without storing full account state on-chain, and by the Token-2022 Confidential Transfers extension (via ElGamal encryption and range proofs) to prove token balances are non-negative without revealing the actual amounts. Solana's BPF VM exposes the alt_bn128 elliptic curve syscall to make on-chain Groth16 proof verification computationally feasible within the 1.4M compute unit budget.

Next concepts to explore

Keep the learning chain moving instead of stopping at one definition.

These are the next concepts worth opening if you want this term to make more sense inside a real Solana workflow.

Token Ecosystem

Token-2022 (Token Extensions)

The next-generation token program (TokenzQdBNbLqP5VEhdkAS6EPFLC1PHnBqCXEpPxuEb) that extends SPL Token with configurable extensions. Extensions include transfer fees, confidential transfers, transfer hooks, permanent delegate, non-transferable tokens, interest-bearing tokens, metadata, and more. Token-2022 is backwards-compatible with SPL Token for basic operations.

ZK Compression

Zero-Knowledge Proofs (ZKP)

A zero-knowledge proof is a cryptographic protocol by which a prover convinces a verifier that a statement is true — for example, that a state transition is valid — without revealing any information beyond the truth of the statement itself, satisfying the properties of completeness, soundness, and zero-knowledge. In Solana's ecosystem, ZKPs are used by ZK Compression (via Groth16 SNARKs) to prove correct state transitions for compressed accounts without storing full account state on-chain, and by the Token-2022 Confidential Transfers extension (via ElGamal encryption and range proofs) to prove token balances are non-negative without revealing the actual amounts. Solana's BPF VM exposes the alt_bn128 elliptic curve syscall to make on-chain Groth16 proof verification computationally feasible within the 1.4M compute unit budget.

Token Ecosystem

CPI Guard

A Token-2022 extension that protects token accounts from certain actions during CPI. When enabled, it blocks approve, close, and transfer operations via CPI while still allowing them in top-level instructions. This prevents malicious programs from draining or closing token accounts during composable calls.

Token Ecosystem

Compressed NFT (cNFT)

An NFT stored as a leaf in an on-chain Merkle tree via State Compression, reducing minting cost by ~1,000-5,000x. Only the tree root hash is stored on-chain; leaf data is indexed off-chain. A 1M cNFT collection costs ~50 SOL vs ~12,000 SOL for standard NFTs. Created via the Bubblegum program; transfers require Merkle proofs.

Related terms

Follow the concepts that give this term its actual context.

Glossary entries become useful when they are connected. These links are the shortest path to adjacent ideas.

Token Ecosystemtoken-2022

Token-2022 (Token Extensions)

The next-generation token program (TokenzQdBNbLqP5VEhdkAS6EPFLC1PHnBqCXEpPxuEb) that extends SPL Token with configurable extensions. Extensions include transfer fees, confidential transfers, transfer hooks, permanent delegate, non-transferable tokens, interest-bearing tokens, metadata, and more. Token-2022 is backwards-compatible with SPL Token for basic operations.

ZK Compressionzk-proofs

Zero-Knowledge Proofs (ZKP)

A zero-knowledge proof is a cryptographic protocol by which a prover convinces a verifier that a statement is true — for example, that a state transition is valid — without revealing any information beyond the truth of the statement itself, satisfying the properties of completeness, soundness, and zero-knowledge. In Solana's ecosystem, ZKPs are used by ZK Compression (via Groth16 SNARKs) to prove correct state transitions for compressed accounts without storing full account state on-chain, and by the Token-2022 Confidential Transfers extension (via ElGamal encryption and range proofs) to prove token balances are non-negative without revealing the actual amounts. Solana's BPF VM exposes the alt_bn128 elliptic curve syscall to make on-chain Groth16 proof verification computationally feasible within the 1.4M compute unit budget.

More in category

Stay in the same layer and keep building context.

These entries live beside the current term and help the page feel like part of a larger knowledge graph instead of a dead end.

Token Ecosystem

SPL Token Program

The original Solana Program Library token program (TokenkegQfeZyiNwAJbNbGKPFXCWuBvf9Ss623VQ5DA) that implements fungible and non-fungible token operations. It manages mints (token definitions) and token accounts (balances). Core instructions include InitializeMint, MintTo, Transfer, Burn, Approve (delegation), and Revoke. All SPL tokens on mainnet before Token-2022 use this program.

Token Ecosystem

Solana Program Library (SPL)

Solana Program Library—a collection of on-chain programs and client libraries maintained by Solana Labs. Key SPL programs include Token, Token-2022, Associated Token Account, Memo, Name Service, Stake Pool, and Account Compression. SPL programs are deployed to well-known addresses and serve as the standard building blocks for Solana applications.

Token Ecosystem

Token-2022 (Token Extensions)

The next-generation token program (TokenzQdBNbLqP5VEhdkAS6EPFLC1PHnBqCXEpPxuEb) that extends SPL Token with configurable extensions. Extensions include transfer fees, confidential transfers, transfer hooks, permanent delegate, non-transferable tokens, interest-bearing tokens, metadata, and more. Token-2022 is backwards-compatible with SPL Token for basic operations.

Token Ecosystem

Mint

An on-chain account defining a token type. A mint specifies: supply (total minted), decimals (0 for NFTs, 6 for USDC, 9 for most tokens), mint authority (who can mint), and optional freeze authority. Each unique token (USDC, JitoSOL, etc.) has exactly one mint account. Mint address serves as the token's unique identifier.