- Solana is reported to have officially unveiled 13 token extensions as part of the SPL token evolution.
- So far, all transfers are available for use except the confidential transfers that is expected to be available by February 2024.
According to reports, Solana (SOL) has introduced new token extensions in a groundbreaking move that could provide enhanced functionality to the ecosystem. It is reported that the initiative is part of the SPL token evolution and could be a representation of a groundbreaking development similar to Ethereum’s (ETH) ERC-20 token standard. On January 24, 2024, 13 token extensions were unveiled.
The network is expected to adopt version 1.17 by February 2024 and could pave the way for confidential transfers to be available. Apart from this, all other transfers are currently available for use.
In total, the 13 token extensions include Confidential Transfers, Transfer Fees, Transfer Hooks, Permanent Delegate Authority, Metadata, Metadata Pointer, Default Account State, Non-transferability, Mint Close Authority, Immutable Owner, Interest Bearing Tokens, Required Memo on Transfer, CPI Guard. Plus, some token extensions can be combined.
Solana further discloses that the extensions unlock several use cases including building a better stablecoin, leveling up game assets, and ensuring governance for real-world asset (RWA) issuance. It is important to note that the token extension being a comprehensive suite of turnkey solutions could be a “big catch” for businesses transitioning on-chain – arming developers, financial institutions, enterprises, etc.
It also ensures that businesses have access to similar security and compliance controls just like permissioned blockchain environments. Experts believe that the initiative is a breakthrough in developer tools on the Solana network.
Experts at Solana Labs Comment on the Token Extensions Initiative
According to Anatoly Yakovenko, co-founder of Solana and CEO of Solana Labs, the token extension is strictly in line with the features that make Solana the better destination for developers. He also emphasized that Solana is the first to offer an integrated developer and user experience of this level in a single token program.
Industry giants including Paxos and GMO-Z.com Trust Company Inc. (GMO Trust) are all taking advantage of the benefits provided by token extensions to issue stablecoin on the Solana blockchain. Sheraz Shere, Head of Payments at the Solana Foundation lauded the network, calling it the blockchain of choice for enterprise-grade companies seeking to make a groundbreaking entry into the world of Web3.
Shere also mentioned that the likes of Visa, Worldpay, Stripe, Google, and Shopify can testify to the merits attached to the Solana network. The Head of Payment at Solana also stated that these companies have launched solutions and applications that are only possible on the Solana network.
Amira Valliani, Head of Policy at the Solana Foundation also commented:
A growing number of enterprises are interested in the benefits of blockchain but want to ensure that they can adopt the technology in a responsible way that adheres to their internal compliance processes. One of the many benefits of token extensions is that it simplifies these processes. Extensions like transfer hooks, confidential transfers, and permanent delegates streamline compliance obligations and ensure that companies don’t spend resources customizing smart contracts to implement their compliance frameworks.
As of press time, SOL was trading at $92.11 after surging by 0.7% in the last 24 hours with an 184.12% run in the last three months. Currently, the asset is the fifth largest crypto with a market cap of $39,828,586,312.
