---
title: Privacy
seoTitle: Privacy for Financial Applications on Solana
description:
  Compare Confidential Balances, the Solana Privacy Protocol, and Private
  Channels for financial applications on Solana.
url: /docs/finance/privacy
type: conceptual
related:
  - /docs/tokens/extensions/confidential-transfer
  - /docs/tools/private-channels
  - /docs/core/programs/builtin-programs
hideTableOfContents: true
---

Privacy on Solana is a set of application-level tools rather than a single
network mode. The right solution depends on what your product needs to hide, who
must be able to inspect it, and how much control the operating institution
requires.

<Callout type="info" title="Privacy has explicit boundaries">
  “Private” does not mean the same thing in every model. Define whether you need
  amount confidentiality, participant anonymity, policy controls, private
  execution, or audit access before choosing an integration path.
</Callout>

## Compare the three solutions

| Solution                | Best fit                                         | Privacy boundary                                                                       |
| ----------------------- | ------------------------------------------------ | -------------------------------------------------------------------------------------- |
| Confidential Balances   | Confidential Token-2022 balances and transfers   | Amounts and balances are private; accounts and transaction participation remain public |
| Solana Privacy Protocol | Programmable onchain privacy and custom policies | Default and custom Rings define whether assets, amounts, and participants are private  |
| Private Channels        | Institution-operated private execution           | Channel activity and data access stay inside an institution-controlled perimeter       |

## Confidential Balances

<DocsDiagram
  src="/assets/docs/finance/privacy/confidential-balances.svg"
  alt="Confidential Balances diagram showing public sender and recipient accounts, encrypted balances and transfer amount, optional auditor access, and network verification of a zero-knowledge proof"
/>

Confidential Balances is a Token-2022 extension for encrypting token balances
and transfer amounts while continuing to use public Solana accounts.

- **Private:** token balances and confidential transfer amounts.
- **Public:** the mint, token accounts, account owners, and transaction
  participation.
- **Audit model:** a mint may configure an optional ElGamal auditor key that can
  decrypt transfer amounts. It does not reveal an account's full balance or
  grant authority to move tokens.
- **Execution:** the Token Extension Program updates encrypted state, while the
  ZK ElGamal Proof Program verifies the transfer proof on Solana.

[Learn how Confidential Balances works](/docs/tokens/extensions/confidential-transfer),
[plan an integration](/docs/tokens/extensions/confidential-transfer/integration-guide),
or
[configure issuer controls](/docs/tokens/extensions/confidential-transfer/issuer-guide).

## Solana Privacy Protocol

<DocsDiagram
  src="/assets/docs/finance/privacy/solana-privacy-protocol.svg"
  alt="Solana Privacy Protocol diagram showing a permissionless Default Ring, a policy-controlled Custom Ring, private cross-ring transfers, and optional policy-defined auditor access"
/>

The Solana Privacy Protocol, documented by Helius as **Solana Rings**, provides
encrypted onchain balances and programmable privacy through APIs. It is
currently in beta.

- **Default Ring:** permissionless and confidential. The asset and amount are
  private, while the sender and recipient remain public.
- **Custom Rings:** Solana programs that can be confidential or anonymous and
  can add transfer policy, reporting, compliance controls, and auditor
  visibility.
- **Execution:** transfers are self-custodial, can move between Rings, and
  settle natively on Solana in one transaction.

[Read the Solana Privacy Protocol documentation](https://www.helius.dev/docs/privacy/).

## Private Channels

<DocsDiagram
  src="/assets/docs/finance/privacy/private-channels.svg"
  alt="Private Channels diagram showing a private channel inside an institution-controlled perimeter, hidden from external observers, with optional institution-granted auditor visibility and movement to and from Solana mainnet"
/>

Private Channels is private execution infrastructure for institutions that need
operational control in addition to transaction privacy.

- **Inside the channel:** transfers are private, instant, and have no set
  per-transaction fee.
- **Institution controls:** the operator defines participation, access controls,
  ordering, rate limits, compliance requirements, and data visibility.
- **Audit model:** external observers cannot inspect channel activity, while the
  institution can grant auditors the visibility required by its policy.
- **Mainnet relationship:** value moves into and out of the channel through
  Solana mainnet while execution inside the channel remains private.

[Explore Private Channels](/docs/tools/private-channels) or
[view the product page](https://launch.solana.com/products/private-channels).