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Shielded Bitcoin proposal aims to enable private base-layer transactions
The approach uses a privacy metaprotocol on Bitcoin's base layer with transactional structure and an indexing scheme that relies on Bitcoin mechanisms for pegging funds.
Bitcoin Magazine highlighted a new Shielded Bitcoin proposal intended to enable stronger privacy for Bitcoin transactions using a base-layer privacy metaprotocol.
The proposal, advanced by researchers Clara Shikhelman, Misha Komarov, and Aleksei Moskvin, is designed to support shielded transactions without requiring operators, soft forks, or other changes to Bitcoin consensus.
The design defines a transactional structure and indexing protocol for privacy-preserving transfers, mirroring Bitcoin’s own structure with an equivalent to UTXOs referred to as notes.
According to the publication, shielded transactions would be data blobs added to standard Bitcoin transactions, and a Shielded Bitcoin indexer would monitor the blockchain, using a nullifier set to determine which encrypted notes are spent without revealing which note was used.
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