Layer 1 blockchain Solana’s development team, Solana Labs, has introduced a new feature called “Token extensions” for the network’s SPL tokens. Token extensions are a series of programs similar to Ethereum’s ERC-20 token standard.
According to a spokesperson, token extensions are a new SPL token standard that enhances existing functionalities. Token extensions enable dozens of new use cases, including enhanced token interactions, transfer fees for each swap token, and zero-knowledge proof-driven confidential transfers. According to a company statement, the main purpose of token extensions is to aid businesses in transitioning to on-chain and provide streamlined security, compliance, and other services on the Solana network.
According to a tweet from Solana’s official account, token extensions have 13 functionalities, including confidential transfers, transfer fees, transfer hooks, permanent representative authority, metadata, metadata pointers, default account states, non-fungibility, minting end authorization, immutable owners, interest-bearing tokens, transfer memos, and CPI protection. Additionally, some token extensions can be used in combination.
Co-founder and CEO of Solana Labs, Anatoly Yakovenko, stated that cryptocurrency service company Paxos and New York stablecoin issuer GMO-Z.com Trust Company have already adopted Solana’s token extensions for stablecoin issuance.
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