TLDR
- Encifher’s eZEC re-wraps ZEC for encrypted transactions on Solana’s blockchain.
- ZEC’s price surge prompted the need for privacy features on Solana’s network.
- Encifher uses fully homomorphic encryption to protect transaction data.
- Solana users can trade encrypted ZEC tokens privately on the Jupiter DEX.
Zcash (ZEC) has experienced a major price surge, increasing by over 380% this month. As ZEC gains traction, it has been integrated into various blockchain networks, including Solana. However, this move raised privacy concerns. Wrapped ZEC tokens on Solana lack the privacy features native to Zcash. Encifher is addressing this issue by using encrypted assets like eZEC, which restore ZEC’s privacy on Solana through advanced encryption technologies.
ZEC’s Price Surge and Solana Integration
ZEC’s recent price surge, which reached $375, has been attributed to several factors, including the upcoming ZEC halving event and the introduction of Grayscale’s ZEC Trust. The token’s rising value has driven the need for greater integration into other blockchain ecosystems, such as Solana. On October 16, 2025, the Zolana bridge launched wrapped ZEC (wZEC) on Solana, offering users the ability to move ZEC across the fast, low-cost network.
However, the wrapped version of ZEC on Solana comes with a major limitation. Unlike native Zcash, wrapped ZEC does not preserve its privacy features. Wrapped ZEC is treated as a standard Solana Program Library (SPL) token, which means transaction data and balances are visible on the blockchain. This loss of privacy has drawn concerns among users who value Zcash’s original mission of private transactions and asset-level confidentiality.
Encifher’s Solution for Privacy on Solana
Encifher has stepped in to address this gap by re-wrapping ZEC into encrypted assets, such as eZEC. These encrypted tokens maintain the privacy features of Zcash, enabling private, encrypted transactions on Solana. Through the use of fully homomorphic encryption (FHE), which includes threshold ElGamal encryption and zero-knowledge proofs, Encifher ensures that user balances and transaction details remain concealed.
The solution works by storing encrypted data off-chain, with the Solana blockchain used only for cryptographic pointers to these encrypted balances. This means that even though the transaction occurs on Solana, the data itself is not exposed. Encifher also prevents transaction linkability by employing ephemeral accounts. These accounts exist only for a single transaction, preventing any analysis or tracking of the user’s activity.
Homomorphic Encryption and Privacy Features
The encryption technology used by Encifher is based on fully homomorphic encryption (FHE), which allows for computations on encrypted data without the need to decrypt it. This ensures that transaction data, including balances and transfer details, is kept private while still being verified on the blockchain.
Additionally, Encifher uses threshold ElGamal encryption, which adds another layer of security. In this encryption model, a “threshold” of trusted parties must come together to decrypt data. This ensures that no single entity has access to the sensitive information. The use of zero-knowledge proofs further enhances privacy by allowing transactions to be validated without revealing any of the underlying data.
Privacy Preservation with Solana DeFi
Encifher’s privacy-preserving features are already operational on Jupiter, Solana’s leading decentralized exchange (DEX). This integration allows users to trade encrypted tokens while ensuring that their privacy is maintained. As a result, ZEC holders can now enjoy the speed and low costs of the Solana network while maintaining the privacy that Zcash originally promised.
The use of ephemeral accounts also contributes to privacy preservation. These accounts are not tied to any user’s long-term identity and are discarded after each transaction, making it nearly impossible for third parties to link transactions together. This setup significantly reduces the risk of privacy breaches that can occur on public blockchains.
Encifher’s solution successfully bridges the privacy features of Zcash with the efficiency and scalability of Solana, making it possible for users to reclaim ZEC’s original promise of asset-level privacy on a high-speed network.
