Researchers propose Zcash-style private Bitcoin transfers without a soft fork
Shielded Bitcoin would use zero-knowledge proofs and encrypted notes to hide transaction details without changing Bitcoin consensus, but researchers have raised questions about anonymity and quantum resistance.
Shielded Bitcoin would use zero-knowledge proofs and encrypted notes to hide transaction details without changing Bitcoin consensus, but researchers have raised questions about anonymity and quantum resistance.
Researchers at the cryptography research firm Alloc Init have proposed a system for bringing Zcash-style private transfers to Bitcoin without requiring a soft fork.
The proposal, called Shielded Bitcoin, would conceal transaction amounts, senders, receivers and links to previously spent funds using encrypted notes and zero-knowledge proofs. The paper was published on Thursday by Clara Shikhelman, Mikhail Komarov and Aleksei Moskvin.
Developer Vadim Zavodil criticized the proposal on X, arguing that much of its privacy stack had already been implemented by Zcash. He questioned how much privacy a newly launched system could initially provide, arguing that a new shielded pool would start without the anonymity set Zcash has accumulated over years of use.