Solana Token Extensions Gain Momentum as SOL Makes a Comeback, Surging 5%
The Solana Foundation, a non-profit organization dedicated to decentralization, adoption, and security on the Solana network, has released token extensions.
Solana Token Extensions Gain Traction
According to a recent announcement, token extensions offer developers, enterprises, financial institutions, and Solana-native development teams a complete set of ready-to-use solutions for advanced token functionality. Anatoly Yakovenko, the co-founder of Solana and CEO of Solana Labs, expressed his thoughts on the launch, saying:
Token extensions build on the characteristics that make Solana the ideal choice for developers. Solana is the first network to provide such an integrated developer and user experience within a single token program. We are already seeing the potential to build using token extensions, with deployments from some of the biggest names in crypto.
Industry giants Paxos and GMO-Z.com Trust Company Inc. (GMO Trust) are at the forefront of adopting token extensions. As stated by the Solana Foundation, these companies are “leveraging the benefits” of token extensions to issue stablecoins on the Solana blockchain.
As previously reported, Paxos, a regulated blockchain and tokenization infrastructure platform, expanded its stablecoin issuance to the network in December. Similarly, GMO Trust announced the launch of the first regulated Japanese yen stablecoin and their own US dollar stablecoin on the Solana network.
New Standards For Blockchain Compliance?
Sheraz Shere, Head of Payments at the Solana Foundation, highlighted the appeal of the Solana network for enterprise-grade companies entering the web3 space. Shere stated:
Companies like Visa, Worldpay, Stripe, Google, and Shopify have already recognized the performance advantages inherent to the Solana network and have developed solutions and applications that are only possible on Solana. With token extensions, we are expanding the possibilities for enterprises to adopt blockchain by natively enabling features that matter to large regulated companies.
Token extensions, tailored for builders across diverse industries such as stablecoins, real-world assets (RWA), and payments, offer a range of interesting features:
- Transfer Hooks: Enables token issuers to have control over token interactions, allowing developers to create intricate and flexible token mechanisms.
- Transfer Fees: Provides the ability to levy fees for each token transfer, offering sustainable revenue models for different types of tokens built using token extensions.
- Confidential Transfers: Utilizes zero-knowledge proofs to encrypt the transfer amount while publicly sharing the source, destination, and token type. This ensures compliance while preserving privacy.
- Permanent Delegate Authority: Grants token issuers absolute authority over their tokens, particularly for those requiring revocation ability, such as licenses or credentials.
- Non-transferability: Restricts token transfers to the issuer only, making it perfect for unique user identification and credentialing purposes.
In the long run, with the introduction of token extensions, Solana aims to establish itself as a prominent force in blockchain development, offering builders the tools to create new applications across various industries.
The SOL token experienced a significant drop of over 28% in the last 30 days, causing it to decline to the $79 level. However, in the past 24 hours, the token has rebounded by 5%, resulting in a current trading price of $87.
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