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Token Standards · hard

87. Token-2022: Confidential Transfers

Zero-knowledge encrypted balances using ElGamal and Twisted Edwards.

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The Confidential Transfers extension uses zero-knowledge proofs (ZKP) to encrypt account balances and transfer amounts while verifying solvency and non-negative balance math on-chain.

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Check your understanding

1. What cryptographic technique powers Token-2022 Confidential Transfers?
Zero-knowledge proofs (ZKP) and ElGamal encryption over Twisted Edwards curvesRSA 2048 encryptionSHA-256 hashing onlyAES symmetric keys
2. Are sender and recipient addresses hidden in confidential transfers?
No, only token balances and transfer amounts are encrypted; addresses remain publicYes, everything is hiddenAddresses are deletedOnly on devnet

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