Odaily Planet Daily reports that Solana infrastructure company Helius has announced the acquisition of Light Protocol, whose team will now refocus on developing Solana privacy solutions.
Light Protocol was founded in 2021, initially focusing on zero-knowledge proof-based privacy tools for Solana, before shifting to co-develop ZK Compression with Helius. The solution launched in 2024 aims to reduce on-chain data storage costs on Solana using zero-knowledge proofs, enabling large-scale consumer and enterprise applications.
This acquisition will enable Light to return to its original mission by combining its cryptographic expertise with Helius’s infrastructure and distribution advantages to develop a ZK privacy protocol for Solana, covering use cases such as private payments and private DeFi. Helius plans to make the associated privacy infrastructure available to developers over the coming months.
This transaction takes place against the backdrop of accelerating consolidation in the crypto industry and a tightening funding environment, while also aligning with the resurgence of on-chain privacy demand. Helius founder Mert Mumtaz stated that privacy will become a foundational element for blockchain scalability, much like HTTPS is for the internet.