Lava Cash
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Privacy is a vital component of any censorship resistant blockchain. Without it, there are very clear pathways to breaking the network’s fungibility. For example, if fungibility erodes, using SOL in a smart contract that pools user’s funds poses taint risk. Unsuspecting users whose coins are blindly tainted may find that they are demoted to second-class citizens in the network as their deposits to smart contracts are rejected and they are discriminated against when trying to exchange their SOL for goods and services. This would lead to multiple economies of SOL tokens, a clear indication that the network is no longer a truly censorship resistant network.

But it doesn’t have to be that way! Lava imagines a world in which privacy is fast, cheap, and user friendly Solana users. Privacy should be a default, not a series of protocols that are only used by sophisticated users with large holdings. That’s why we are announcing Lava Cash, the first privacy preserving smart contract on Solana. We have designed Lava Cash as a non-custodial smart contract that utilizes zk-STARKs to break any deterministic links between funds that have entered the “Lava Pool” from those that have exited.

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