Solana Launches ‘Token Extensions’ to Boost Use Cases
The Solana blockchain has implemented a major upgrade focused on expanding the functionality and compliance capabilities of tokens built on the network.
Dubbed “token extensions,” the new features allow developers to hard-code special rules and controls into tokens created on Solana, including:
Key Highlights:
- Token extensions let developers program token rules like fees, delegate authority, and confidential transfers.
- It aims to boost compliance and use cases for stablecoins and securities tokens.
- The upgrades developed over the past year are currently live.
According to the Solana Foundation, a non-profit supporting the network’s growth, the extensions open up new potential services and controls for assets like stablecoins and securities tokens.
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Five Solana token extensions are available
For example, confidential transfer support utilizes zero-knowledge proofs to mask transaction details, while transfer fees can fund continuous payments to token creators, and permanent delegate authority gives issuers ongoing control.
The five available token extensions reviewed by CoinDesk are:
- Transfer Hooks: Checks the validity of transfers.
- Transfer Fees: Charges fees automatically.
- Confidential Transfers: Hides transfer amounts.
- Permanent Delegate Authority: Ongoing issuer controls.
- Transfer Fees: Charges fees automatically.
The transfer hooks extension enables the programming of token-specific transfer rules that must be passed for transactions to go through. This allows creators to whitelist addresses, set transfer limits, blacklist bad actors, and more.
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The Solana Foundation states that upgrading Solana’s SPL token standard finally gives developers the tools seen in rival programmable blockchains like Ethereum but with Solana’s vastly lower transaction fees and faster speeds.
Anatoly Yakovenko, CEO of core developer Solana Labs, stated that the news continues Solana’s track record of balancing usability with the needs of enterprises and serious projects.
