Solana has introduced Privacy Rings, a privacy system that lets users move SOL and other Solana-based tokens through encrypted on-chain balances while staying on the network’s mainnet. The design centers on shielded pools called Rings, where users can deposit funds, transfer them privately to other Solana wallets, and later withdraw them back to ordinary public balances.
The system supports SOL as well as other Solana assets, including SPL and Token-2022 tokens. According to the source material, users retain custody throughout the process because each transaction still requires the owner’s signature, and the encrypted transfer data is recorded directly on Solana rather than being routed through a separate layer-2 network or sequencer.
How the Rings work on Solana
A Privacy Ring functions as a programmable pool holding encrypted balances on Solana. Once tokens are deposited, those balances can be used for private transfers between wallets on the same chain, then converted back into standard public holdings whenever the user chooses.
The setup is intended to keep private balances connected to the broader Solana environment, including stablecoins, tokenized assets, and DeFi liquidity already present on the network. The Solana Foundation’s framing for this approach is “public by default, private by choice,” meaning the level of privacy can vary depending on the user or application.
Confidentiality by default, anonymity as an option
The system defines two privacy levels. Confidentiality hides the asset involved and the amount being transferred, while Anonymity goes further by also obscuring the sender and recipient. The default Ring, which is already live on mainnet, provides confidentiality but does not hide wallet addresses.
Each private transfer is accompanied by a zero-knowledge proof, specifically a Groth16 zk-SNARK, to verify that the transaction is valid without exposing the underlying figures. Private balances can also be accessed through a viewing key, allowing information to be decrypted locally or by a service provider. A viewing key may also be shared for a single transaction with an auditor or a counterparty.
Default and custom Rings serve different users
Solana distinguishes between two Ring types. The Default Ring is the live mainnet version designed for confidential transfers with visible sender and recipient addresses. Custom Rings, aimed at businesses and other specialized use cases, can be configured either for confidentiality or for full anonymity.
Custom Rings can also include compliance and control features such as KYC allowlists, sanctions screening, auditor access, and the ability to freeze and recover funds. The source article says these custom pools remain interoperable with the default Ring, allowing regulated entities to keep transactions confidential while still sharing liquidity with the broader system.
Potential uses and the security model
The article points to several applications for encrypted balances on Solana, including private swaps, private lending, private staking, and yield strategies. It also describes encrypted escrow-style programs for conditional payments, such as payroll, vesting, or multisig treasury releases.
On the security side, Solana’s core programs and zero-knowledge circuits have been audited by Certora, OtterSec, and ZK Security, according to the source. The code is open source under the Apache 2.0 license. Formal verification is still in progress and is expected to be completed by the end of 2026.
Compliance remains part of the rollout
The source notes that privacy tools bring compliance considerations alongside technical benefits. For the default Ring, Solana has wallet-screening collaborations in place with Range, Chainalysis, and Elliptic.
The immediate next confirmed step is the completion of formal verification work, which the article says is expected before the end of 2026. In the meantime, the default Ring is already live on mainnet, while custom Rings expand the model for organizations that need stronger anonymity or additional compliance controls.
Source: decrypt.co