Veilix Protocol

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The Privacy Problem ​

Public blockchains publish every transfer. That is how strangers can check that a payment happened without trusting a bank. It is also how strangers can reconstruct a person’s financial life.

On Solana, a wallet address is a permanent public identifier. Anyone with an explorer can see:

  • the tokens that address holds
  • every account it has paid or been paid by
  • the size and time of each transfer
  • which programs it has used

One identified payment is enough to label the address. After that, the rest of the history is readable. A salary, a customer payment, a treasury movement, and a personal transfer all sit on the same public record.

What leaks, even when you “use a new wallet” ​

Creating a fresh address does not, by itself, break the trail.

  • If the old wallet funds the new one, the funding transfer is the link.
  • If the new wallet pays a known counterparty, that counterparty learns the new address.
  • If the withdrawal of a private balance is signed by the recipient, the recipient still needs SOL for fees, and the source of that SOL is often the original wallet.

Privacy has to survive the funding of the transaction, not only the transfer of the token.

Who this affects ​

People. A public salary, a donation, or a payment to a merchant becomes a permanent association between two identities.

Businesses. Payroll, suppliers, and treasury movements are visible to competitors. Counterparties can see the company’s balance and its other relationships.

Applications. A wallet that integrates payments inherits this record. Users who want a private send still need the recipient to get a normal Solana balance, without a claim step and without the sender’s address attached.

What “private” has to mean here ​

A useful privacy protocol on Solana has to do four things at once:

  1. Accept a deposit from address A.
  2. Pay address B, which A chooses.
  3. Leave no on-chain proof that A’s deposit is B’s withdrawal.
  4. Keep the funds under the user’s secret, not under an operator’s key.

Veilix is built for that problem. The next chapter describes the mechanism. Amounts are not fixed: a note can hold any amount the tree allows, and a withdrawal can spend part of it.