The Solana Foundation introduces a new privacy framework for institutions.

PANews reported on March 24th that, according to CoinDesk, the Solana Foundation released a report titled "Privacy on Solana: A Comprehensive Approach for Modern Enterprises," arguing that enterprise adoption requires flexible privacy controls and positions privacy as a customizable feature rather than a trade-off. The report believes that the next phase of crypto adoption will depend more on giving enterprises control over who and what information is disclosed, rather than solely relying on transparency.

The Solana Foundation proposes four distinct privacy models: pseudonymization, confidentiality, anonymity, and a fully private system. Pseudonymization hides identities while making transaction data visible; confidentiality allows participants to be known but encrypts sensitive information; anonymity hides participant identities but makes transaction data visible; and a fully private system uses technologies such as zero-knowledge proofs and multi-party computation to simultaneously mask both identity and transaction data. The report emphasizes that no single privacy model is suitable for all scenarios, and enterprises can use a mix of different tools as needed. The report points out that Solana's high throughput and low latency enable advanced privacy technologies to operate at near-network speeds, making applications such as encrypted order books or private credit risk calculations possible. The Solana Foundation also proposes mechanisms such as "audit keys," allowing designated parties to decrypt transactions when needed, thus achieving a balance between privacy and regulation.