Solana, a layer-1 blockchain, introduced Token Extensions, the newest iteration of the Solana token program. The Token Extensions use a standard interface to connect to Solana applications, allowing the creation of specialized tooling and programming functionality to tokens.
Developers can now establish rules around tokens, dictating their functionality and determining their holders. The Token Extensions empower businesses to embed diverse features directly into their tokens, such as whitelisting, automatic transfer fees, and confidentiality provisions for transfers.
Key Token Extensions offer enhanced functionalities, including transfer hooks for verifying and potentially revoking transfers, confidential transfers employing zero-knowledge proofs to shield sensitive information, permanent delegate authority, allowing token issuers ongoing control over transfers and destruction of tokens, regardless of the current holder, and non-transferability, preventing token holders from transferring assets to different wallets.
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