DFINITY Foundation, the creator and major contributor to the Internet Computer Protocol (ICP), announced the launch of the Niobium milestone, a critical cryptographic upgrade that brings enhanced privacy-preserving features to the Internet Computer using vetKeys (Verifiable Encrypted Threshold Keys), into full production.
With Niobium, developers building decentralized applications (dApps) on ICP now use on-chain encryption, a first in the blockchain space. This is enabled by a powerful, decentralized key management system, called vetKeys, which enables user data privacy without sacrificing blockchain functionality. vetKeys is a decentralized key management solution, allowing one to derive cryptographic keys on demand, in a fully decentralized way. With this, developers can build dApps where users’ data is encrypted, for the first time addressing privacy needs on a public blockchain.
vetKeys are built on a new verifiably encrypted threshold key derivation protocol (vetKD), which lets canister smart contracts manage and request cryptographic keys that are securely derived and encrypted with a user’s public key. This ensures that neither subnet nodes nor canisters can access the keys, and users can verify the process independently.
The functionality is now directly available through a new system API, enabling smart contracts to request cryptographic operations without relying on off-chain components. Developer libraries and frontend tooling included in the Niobium release streamline the integration process, making it easier to build privacy-preserving dApps end-to-end.
“Niobium marks a significant step for the decentralized web,” said Jan Camenisch, Chief Technology Officer at DFINITY. “With vetKeys, we’re solving a fundamental privacy and data protection flaw with blockchain technology – ultimately redefining what’s possible on-chain. For the first time, developers can build applications that combine the integrity of blockchain with the confidentiality of encryption, all within a smart contract. This is a foundational step toward a future where data sovereignty is universal, and decentralized systems can truly surpass the capabilities of centralized tech.”
vetKeys support a wide range of advanced use cases: from Maximal Extractable Value (MEV) protection in DeFi via threshold encryption, to enhanced privacy for Internet Identity. The technology also introduces support for identity-based encryption, allowing data to be encrypted directly to an identity (such as an Internet Identity, principal, or Ethereum address) enabling secure, user-specific data access – along with applications for Timelock Encryption, Threshold BLS Signatures for multichain applications, and Verifiable Randomness, meaning that canisters can generate randomness that is not only unpredictable and tamper-proof but also publicly verifiable.
This milestone reinforces the Internet Computer’s position as the only blockchain capable of running software and services directly on-chain – without off-chain dependencies or Big Tech intermediaries. vetKeys further extend this architecture with end-to-end privacy guarantees in a trustless environment.
Developers interested in building with vetKeys can access documentation and resources through the official DFINITY channels. The Niobium milestone is now live on the Internet Computer mainnet.