Solana recently introduced token extensions, a futuristic token toolset. According to the X thread, the advanced token functionality will help developers on Solana.
With the extensions, developers can quickly build custom token experiences. These experiences will be designed to keep up with every business and market compliance requirement.
Moreover, the extensions offer flexible and safe tooling for real-world and digital assets. Given the low cost and high-throughput nature of Solana, the extensions will offer unmatched value to developers.
They will unlock unique capabilities for developers and businesses that were not possible on several public blockchains. Currently, there are more than a dozen token extensions at the program level that offer use cases like:
- Improving game assets
- Developing a better stablecoin
- Governance for RWA (real-world asset) issuance
In total, thirteen token extensions exist, comprising:
- Transfer Hooks
- Confidential Transfers
- Transfer Fees
- Permanent Delegate Authority
- Metadata Pointer
- Default Account State
- Immutable Owner
- Mint Close Authority
- Interest-bearing tokens
- CPI Guard
- Required Memo on Transfer
Some of these extensions can also be combined. Solana has also shared full documentation to help developers better understand the extensions.
Names like OtterSec, Halborn, Zellic, Trail of Bits, and NCC Group have audited these extensions. Although they offer advanced capabilities, their integration is quite simple. Thus, they allow developers to merely focus on devising new use cases.
Ever since the news dropped, Solana has gained 4% in market value. The token is currently trading at $87.39 and according to our Solana forecast, the SOL price is expected to grow in near future, especially since projects like Paxos, GMO-Z.com, Phantom, Solflare, and Fluxbeam have announced token extension support on Solana.
These extensions will reduce the amount of engineering effort needed to allow developers to bring their projects to life. Given the blockchain industry’s current state, token extensions seem like the future of tokenization.