Key Highlights
- Polygon CDK now supports configurable privacy features for institutional blockchain deployments.
- The validium setup uses zero-knowledge proofs while keeping transaction data private within institutional infrastructure.
- The upgrade allows institutions to maintain regulatory access controls while preserving on-chain confidentiality.
Polygon Labs today introduced new privacy capabilities for its Chain Development Kit (CDK), allowing institutions to build custom blockchains with configurable levels of confidentiality while maintaining connectivity to the broader onchain economy through the AggLayer.
According to the official announcement, the update includes a new validium configuration with privacy features supported by Succinct Labs’ technology. The setup includes raw transaction data completely within infrastructure owned by the institution.
Ethereum only gets a cryptographic commitment and a zero-knowledge proof, permitting public verification that the chain is working correctly without ever being exposed to the underlying transactions.
The core principle includes “private data, public verification.” Batch data remains in an institution-controlled data-availability environment, making sure that sensitive data never gets exposed to a public network. Settlement depends on validity proofs instead of trust in an operator, offering strong security guarantees.
Composable privacy options
The upgrade introduces five configurable privacy layers that institutions can adopt as their requirements evolve:
- Permissioned Access: Role-based RPC endpoints, private block explorers, and enterprise SSO integration (e.g., Okta or Azure AD) for controlled access without data confidentiality.
- Confidential Chain: The recent addition that keeps transaction data private within institutional infrastructure.
- Confidential Compute: An execution environment for workloads sealed even from the chain operator, suitable for dark-pool matching, encrypted RFQs, and sealed-bid auctions.
- Confidential Tokens: Completely homomorphic encryption on permissioned token rails keeps balances and transfers values encrypted on-chain.
- Confidential User Transactions: Client-side zero-knowledge proofs for shielded pools at the wallet level, making senders, receivers, and amounts unlinkable.
Role-based access controls plus selective disclosure mechanisms permit counterparties, auditors, and regulators to access only the data relevant to them; however, chain operators have complete visibility wherever needed. Even operational metadata can remain private if needed.
Polygon expands network capacity
In a separate development, Polygon recently increased its block gas limit from 120 million to 140 million gas to improve throughput and support high-volume decentralized applications and payment use cases.
According to Polygon, the upgrade raises the network’s theoretical maximum throughput to more than 3,800 transactions per second.
The Polygon team on X mentioned, “Another upgrade for the chain. Now up to 140M gas, bringing max TPS to 3,800+. We’ve increased capacity again to enable even more on-chain payments at scale.”
Broader context
With increased regulatory pressure on digital assets and the rise of tokenized real-world assets, solutions that maintain privacy, compliance, and interoperability are now essential infrastructure.
The latest updates to the Polygon CDK help pave the way for institutional use cases by addressing one of the final hurdles, data privacy, without compromising the transparency that is key to the value of blockchain.
The move aligns with Polygon’s vision to be the underlying layer of the “Open Money Stack,” shifting from generic scalability to specialized infrastructure for regulated financial use cases.
Also Read: No More Blind Signing: Ethereum Rolls Out Major Wallet Security Upgrade
