TLDR
- XRPL Foundation introduced a proposal to add encrypted and verifiable privacy features to the XRP Ledger.
- Zcash price dropped 46% after a long-standing bug raised concerns about hidden inflation risks.
- The XLS-0096 amendment uses zero-knowledge proofs and homomorphic encryption to secure transaction data.
- Validators can verify total token supply while user balances remain hidden from public view.
- The privacy framework includes compliance tools such as selective disclosure and view keys for regulators.
The XRP Ledger community signaled a privacy upgrade as Zcash faced a sudden technical failure. The update proposal introduces encrypted transfers with validator-level verification. At the same time, Zcash recorded a 46% price drop after a critical flaw surfaced.
XRPL Foundation outlines encrypted transfer model for XRP Ledger
An XRPL Foundation community lead presented amendment XLS-0096, targeting native confidentiality for token transfers on the ledger. The proposal introduces Confidential Transfers for multi-purpose tokens using cryptographic proofs and encrypted balances. He stated that the design shifts privacy from anonymity toward verifiable confidentiality within the network rules.
if you're in zcash, pivot soon to XRP Ledger privacy.
— Vet (@Vet_X0) June 5, 2026
The model applies EC-ElGamal homomorphic encryption with zero-knowledge proofs to secure transaction data. Validators can verify total supply conditions, while users keep balances hidden from public observers. The system enforces OutstandingAmount ā¤ MaxAmount, ensuring no hidden token creation occurs during encrypted transfers.
The architecture also uses compact sigma protocols and range proofs to validate transactions efficiently. These methods compress verification steps into fixed-size proofs, which protect against computational attacks. The proposal states that this structure limits risks from automated cryptographic analysis and maintains consistent validation across nodes.
Zcash price collapse follows Orchard pool flaw disclosure
Zcash experienced a sharp decline after developers disclosed a flaw in the Orchard shielded pool. The issue reportedly existed since May 2022 and raised concerns about potential hidden inflation. As a result, the ZEC token dropped 46% within one trading session following the announcement.
Market participants reacted quickly, and trading volumes increased as holders exited positions. Arthur Hayes liquidated his ZEC holdings entirely, reflecting a loss of confidence in the network. The sudden selloff pushed Zcash into a rapid price correction, driven by uncertainty over supply integrity.
The Zcash team began efforts to contain the issue and restore system integrity. Developers moved to recruit cryptographers to rebuild a secure pool structure. They also initiated a manual audit process to recount existing coins and verify the circulating supply.
XRP Ledger design targets compliance and scalable confidentiality
The XLS-0096 framework introduces a split balance structure for wallet management within the XRP Ledger. Wallets contain a spendable balance and an Inbox buffer to handle incoming transfers without disrupting proofs. This design prevents transaction failures caused by outdated zero-knowledge data.
The proposal includes selective disclosure features and view keys to support regulatory requirements. These tools allow authorized parties to access transaction data when needed for compliance. The framework aims to balance privacy with reporting obligations for institutional participants.
Developers confirmed that initial deployment will focus on multi-purpose tokens such as stablecoins and tokenized assets. However, they stated that the architecture can extend to XRP in future implementations. The XRPL Foundation indicated that this rollout establishes a base layer for broader confidentiality features across the network.
