Stellar Network, known for its focus on international remittances and payments similar to Ripple (XRP), is moving into a new technological phase.
And the Stellar Development Foundation (SDF) announced the Protocol 25 update, which adds privacy features at a native level. The purpose is to allow applications to run on the network. Protect specific data without losing transparency What the system points to.
The initiative, also known as “X-Ray,” was announced on November 24th. A vote was taken to include this. Starts on January 7, 2026 It will take place on January 22nd on testnet and on January 22nd on mainnet.
This proposal marks the beginning of a strategy aimed at: Incorporate zero-knowledge cryptography tools (ZK). about them It enables developers to build configurable privacy solutions that are compatible with regulatory requirements.
ZK branch of encryption (Zero knowledgein English) can prove that a particular statement is true without disclosing any information to support it,. This enables verifiable privacy mechanisms without obscuring data integrity.
Roadmap based on zero-knowledge cryptography
The name “X-Ray” comes from the idea of ”showing only what is necessary and nothing else.” The update introduces Stella Native support for two basic components In the field of ZK encryption:
- BN254: Elliptic curve widely used in ZK-based applications. An elliptic curve is a mathematical structure that allows you to: Build secure cryptographic algorithms.
- Poseidon: A family of hash functions designed for systems using such tests. A hash function converts data into an irreversible string. Used to verify information integrity.
Stellar’s BN254: A key part for integrating with the ZK ecosystem
The first component of the proposal is the introduction of native functions that operate on BN254 elliptic curves.
According to the advertisement, it is based on this curve. Numerous zero-knowledge applications like those called privacy poolEthereum’s second layer network Starknet, or a verified messaging system such as ZK Email.
Stellar already supported a more modern variant, the BLS12-381 curve, but BN254 continues to be the most used in current development.
Without native support, programmers had to rewrite their applications to fit a different curve or rely on compromised solutions. Increased execution costs and resource consumption.
X-Ray incorporates three functions that allow smart contracts to perform basic operations on this curve: adding points, multiplying, and validating multiple pairs.
These features allow cryptographic proofs to be efficiently verified within the network, providing functionality comparable to precompilation available on Ethereum. Facilitate migration of projects from that environment.
Additionally, the combination of BN254 and BLS12-381 allows you to choose the best tool for each use case, allowing privacy configurations tailored to the needs of each application.
Poseidon: Optimized hashing for zero-knowledge proofs
The second element of the update is the inclusion of primitives that enable the use of Poseidon and its variant Poseidon2.
While some hash functions, such as SHA-256 used in Bitcoin, provide security, according to the Stellar team; If you try to express it in a ZK circuit, the cost will be high.. This impacts the performance and cost of applications that rely on those tests.
The announcement explains that the primitives introduced by X-Ray make it possible to design hash functions suitable for these systems, reducing the number of operations required to generate and verify proofs.
This eliminates the need for developers to reimplement hashes within contracts and ensures that the logic used off-chain matches the logic executed within the network.
Therefore, with these additions, Stellar establishes a foundation for building privacy-preserving applications without obscuring the general functionality of the protocol.