Sui launches public beta for confidential transfer feature

The Sui blockchain network has launched public testing for a new privacy feature that encrypts transaction amounts and wallet balances while preserving visibility for compliance and audit purposes. The confidential transfers system is now available in a public beta on Sui's developer network, Devnet, with a release on the Testnet planned for later this year.

The feature allows token issuers to activate a mode that hides specific financial data on-chain. While sender and receiver addresses, token types, and transaction timestamps remain publicly visible, the actual transfer amounts and wallet balances are encrypted. This design is intended to protect sensitive commercial information for businesses, such as payment flows and treasury movements, without creating fully anonymous transactions.

The technical implementation uses Twisted ElGamal cryptography on Ristretto255, paired with zero-knowledge proofs. This allows the network to verify that a transfer is valid—preventing overdrafts and unauthorized token creation—without revealing the encrypted values. The company behind Sui, Mysten Labs, has released the code as open-source on GitHub but notes the implementation is unaudited and...