Beldex, a privacy-focused Layer 1 blockchain, has launched Confidential Assets, also known as Privacy Tokens, on its testnet as part of the Proto testnet hard fork.
The upgrade went live at testnet block height 4,242,200, allowing developers to deploy and test privacy-preserving tokens directly on the Beldex network ahead of a planned mainnet rollout.
The new system allows projects to issue their own tokens with transaction confidentiality built into the asset layer.
At launch, Privacy Tokens use Beldex's UTXO-based architecture, which also underpins the network's existing privacy features, including ring signatures and stealth addresses derived from Monero's cryptographic technology.
According to Beldex, transactions involving Privacy Tokens will conceal sender and recipient information, transaction amounts and balances from public view.
Beldex Chairman and CEO Afanddy Bin Hushni said the system is designed to make privacy a default property of tokens rather than an additional feature added through a separate layer.
"For far too long privacy in Web3 continues to be an add-on feature that's just attached," Bin Hushni said. "Privacy Tokens changes that, enabling any project to issue a token where sender, receiver, and amount are protected by default, on day one, without ever needing a separate privacy layer or workaround."
The initial implementation is limited to Beldex's UTXO architecture. EVM-based token deployment is planned for a later stage, alongside the introduction of account-based addresses and the Beldex EVM sidechain.
Beldex said the phased approach is intended to establish the privacy infrastructure first and add EVM compatibility later, rather than adapting a transparent account-based framework to support privacy after the fact.
Privacy tokens target dApps and EVM expansion
Privacy Tokens are being introduced within Beldex's existing privacy-focused application ecosystem, which includes BChat, an encrypted messenger; BelNet, a decentralized VPN that routes traffic through masternodes; the Beldex Browser; the Beldex Wallet; and the BNS Marketplace.
Developers can use the testnet to create tokens that interact with these applications and potentially serve as native assets for private payments, rewards, access or other functions.
Beldex is also developing an Extension Wallet and WebJS SDK to support applications built around Privacy Tokens. The tools are intended to allow web-based dApps to connect with Beldex wallets, request token transfers, display balances and integrate private assets into application workflows.
The company said the infrastructure is designed to let applications interact with Privacy Tokens without exposing sensitive transaction information.
The project also plans to connect its UTXO-based privacy system with an EVM environment. Once account-based addresses and the Beldex EVM sidechain are launched, projects that initially deploy tokens on the UTXO layer will be able to migrate them into the EVM ecosystem while retaining their privacy properties.
Developers can currently begin testing Privacy Tokens through the Beldex testnet. The mainnet deployment is planned for a later stage, with the timing dependent on development and testing of the underlying infrastructure.
Arman Shirinyan
Dan Burgin
