What is ElGamal Encryption?
A public-key cryptosystem with homomorphic properties used for encrypting token balances.
ElGamal Encryption Explained
ElGamal encryption is a cryptographic algorithm that allows mathematical operations on encrypted data without decryption (homomorphic encryption). In Solana's Confidential Transfers, ElGamal encrypts token amounts using your public key, so only your private key can decrypt them. The homomorphic property allows the protocol to add encrypted balances together, essential for tracking totals while maintaining privacy.
Key Characteristics
- Enables operations on encrypted data
- Public-key cryptography (asymmetric)
- Homomorphic properties for balance tracking
- Decades of cryptographic research backing
Real-World Example
Your ElGamal keypair is derived from your wallet seed. When you enable privacy mode, your public key is registered on-chain for receiving encrypted transfers, while your private key stays in your wallet for decryption.
Related Terms
Frequently Asked Questions
What does ElGamal Encryption mean?
A public-key cryptosystem with homomorphic properties used for encrypting token balances.
How does ElGamal Encryption work in DeFi?
ElGamal encryption is a cryptographic algorithm that allows mathematical operations on encrypted data without decryption (homomorphic encryption). In Solana's Confidential Transfers, ElGamal encrypts token amounts using your public key, so only your private key can decrypt them. The homomorphic property allows the protocol to add encrypted balances together, essential for tracking totals while maintaining privacy.
Can you give an example of ElGamal Encryption?
Your ElGamal keypair is derived from your wallet seed. When you enable privacy mode, your public key is registered on-chain for receiving encrypted transfers, while your private key stays in your wallet for decryption.
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