Solana Privacy Ecological Panorama: Full private house from calculation to AI

By Castle Labs

Photo by AididiaoJP, Foresight News

original link: https://www.techflowpost.com/article/32088

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Solana Privacy is still at an early stage

We talked to Helius CEO@mert and asked him about Solana's privacy. In his own words, Solana is "a little behind" in privacy。

So, what should a mature privacy ecology look like

The necessary elements include:

• Formatization Authentication
• No Committee
• Unchangeable
• Open Source

Solana's unique architecture also brings different privacy priorities from the EVM chain. In particular, Mert refers to the ZK compression: "We can achieve large-scale and combustible privacy protocols on Solana without the need for a durable Rollup, at least if it is possible to use base rollups."

Among the specific scenes in Solana, the two vertical areas most relevant to privacy development are Neobanks and Private DeFi. But in terms of tools and user experiences, Solana still has a large gap from a functionally integrated privacy ecology。

We also asked about Mert's views on the private technology warehouse. As emphasized in the report, privacy should not be seen as a single technology, but as the "final privacy house" in which all the original language would eventually work together. For Mert, the final result will be a combination of FHE (totally equivalent encryption) and ZK (zero proof of knowledge). TEE and MPC are useful in some cases, but cannot provide sufficient assurance in adversarial systems。

Finally, we asked him about Helius Privacy。

Helius Privacy will be developed as ZK-based UTXO privacy layer on Solana. It uses "Zones" to allow individual companies to make their own trade-offs。

At the same time, an open Zone will be made available for use by all ordinary users, providing complete anonymity in a non-variable, formalized form. Further details will be published shortly。

Against this background, this paper focuses on how Solana ' s privacy ecology responds to privacy challenges。

Private Company

There are currently two main providers in this area: @Arcium and @magicblock。

Both address similar issues: privacy calculations。

Artium handles arbitrary data through MPC (multiple calculations). It divides the data and spreads them to separate nodes clusters, which together calculate the results without seeing individual inputs. At the same time, Arcium operates as an independent computing network and is finally settled on Solana, which is covered by Solana processing job sequencing, network security and fees。

All of these privacy calculations take place in Multi-Party eExaction Environments (MXEs) - a customized, parallel implementation environment。

In addition to addressing computational problems, Arcium products serve the privacy ecology of Solana more broadly. They are building a code of tokens for fiscal SPL (C-SPL) that can achieve secure tokens, transfers and transactions on Solana。

We asked the Arcium team about the source of demand. As expected, mainly from payments and encryption data analysis, while institutional demand is growing, especially in the area of health care, which makes training models on encrypted data sets possible. C-SPL also allows seamless private transfers and further attracts institutional interest。

In terms of data, Arcium has processed more than 900,000 calculations and more than 3.5 million transactions since the beginning of February 2026 on the Alpha main line, with most of the increase occurring in early May。

Currently, most of the demand comes from early applications such as Umbra. ZINC and Crafts will be online in the coming weeks, and we expect further growth in demand。

ZINC is doing encryption work to prove mining, while Crafts uses Arcium to raise funds for sealed auctions to enable start-ups to monetize part of their equity in a fair price discovery。

“Some exciting new things that are being built on Arcium include the use of sealed bidding for capital formation, the opportunity market, the forecasting of encrypted settlements in the market, and other financial privacy applications.”

Many of these examples are creating new or improved markets where users are not even aware of privacy。

Magic Block solves privacy calculations through TEE, while Arcium relies on MPC's password assurance. Its product is operated by Intel TDX creating a hardware-certified black box, Private Ephemeral Rollup (PER), where transactions are aggregated and processed and then returned to Solana。

MagicBlock helps developers to retain these attributes throughout the warehouse, including confidentiality (protected status), scalability (high throughput), groupability (which can still be interoperability with other Solana programs) and compliance (access control layer)。

While both have different paths to solve the problem, they can generate deployable private order books, dark pools and private DeFi tracks with minimal code changes. This is evident in the ecology above Arcium, which covers several areas, including DeFi, the forecast market, and Neobanks。

Private transfers and balances

With the progressive development of privacy computing infrastructure such as Arcium and MagicBlock, the use of such infrastructure-based examples began to grow, including private transfers。

@UmbraPrivacy is the first to build on Arcium's MPC infrastructure. Umbra introduced Encrypted Token Accounts (ETAs), a direct counterpart of the Solana standard Associated Token Accounts, but the balance is stored in encrypted form to provide:

• Money privacy: transactions are encrypted using Rescue password
• Privacy of balances: balances stored in secret
• ASSOCIATED PRIVACY: BY SHIELDING POOL + ZK TO PROVE COMPLETE DISCONNECTION BETWEEN THE SENDER AND THE RECEIVER

In addition, Umbra provides a compliance function that allows users to grant selective access to auditors and the compliance system without exposing the full trading history. This is important for institutional workflows and for users who wish to prove that they hold funds but do not want to reveal a detailed history of transactions。

In the area of privacy wallets, @theprivacycash and hush are the other two。

Price Cash handles SOL with a Tornado-style shield: The user puts in SOL to generate commitments and adds them to the Merkle tree, then uses ZK certificates to extract them to any recipient, cutting the deposit address completely from the chain to the cash address。

Hush was inspired by Zcash, but added DeFi utility. Users automatically convert SOL into jitoSOL by depositing SOL in the Hush shield, and passively earns pledge proceeds and MEV income while maintaining privacy. In the pool, users can transfer funds to other hush participants, receive funds and make multiple transactions without touching the Solana public books. Upon exit from the pool, the withdrawal was released by mixing with the original deposit. The in-pool transfer cost was 0.01 jitoSOL, with a cash charge of 50 bps. Hush has also consolidated the private exchange of Jupiter and the geographical blockade of the targeted areas, with a better image of compliance among institutional users。

No Onchain Trail

Secret transfers solve the problem of companies and institutions paying employees or conducting private transactions in chains. But to go further, we need to embed privacy in everyday chain behaviours, especially transactions。

Every order on the public AMM is a signal that can be read and used by ex-runners, tracers and MEV robots. There are already agreements on Solana to address this issue。

@encifferio is a private priority DeFi interface that trades through the Jupiter route while keeping the details of the transaction private. The team said, "The quality of implementation remains the same because we did not add a custom route using the same route and mobility provided by Jupiter."

It packs the coins that users want to exchange and exchanges details using El Gamal encryption. The chain records show only a change in the condition of the type of packaged asset, sufficient to let Jupiter know that the right token is passing. The number of transactions, the parties involved, and even whether the transaction has been executed are dealt with in the TEE environment (AWS Nitro Enclaves) and are never broadcast publicly. This resulted in large-scale private exchange。

@VanishTrade moves from different levels. They are building a private trading infrastructure that uses block routes to protect trading strategies from chain traces. Unlike encipherio packaging tokens, Vanish trades by blocking mobile routes. In addition, Vanish has introduced Vanish Information Platform (VIF), supported by Elliptic and Range, to embed protective measures to prevent any illegal traffic。

Darklake, another competitor in this category, is building a primary ZK mobility infrastructure and a dark pool. Its zk-AMM is known as the "blind point slider pool" and is an added submission layer on AMM to hide slide point data before execution. The searcher is unable to read the intent of the order before the transaction has landed, but can verify the result afterwards. This delayed asymmetry prevented sandwich attacks while retaining probabilities. They have extended the model to the zk-Perps, which uses the Arcium Calculator, as well as to a framework of reasoning called Zyga, which is an abstract proof of complexity and provides the builders with a basis for security logic and coordination. Recently, they have also expanded into infrastructure agreements that allow applications and users to use the Proof as Information model to authenticate, connect and compute privately。

Private forecast market

Private forecasting markets are a more advanced privacy application, as user strategies are easily replicated and thus lose their advantage. To address this problem, the agreement is using the Arcium infrastructure to build a dedicated dark pool for the forecast market。

@meleemarkets is building a forecast market to support private order streams. They encrypt the order book through Arcium's MPC infrastructure. Participants may place orders without revealing their direction in the open market until settlement。

The Private AI

AS AI AGENTS ARE INCREASINGLY OPERATING ON THE CHAIN, WILL EVERY QUERY AND CONSUMPTION OF THEIR PII BE PERMANENTLY DISCLOSED

Loyal answered this question through its decentrized, anti-censorship smart protocol. This agreement is built using a temporary Rollup run by Magic Block and an encrypted calculation by Arcium. They are building a chain to protect user data AI: Dialogue, Query, Preferences and Activities, all stored in encryption on Solana and with strict access rules. The user owns and can export its history of encrypted conversations or can host the front end without losing any data. In addition, Loyal supports private transactions and fund management, allowing depositors to earn income in private。