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s/balajisBITCOIN PRIVACY•4d
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Shielded Bitcoin proposal could add private transfers without a soft fork

Bitcoin could get private transfers without changing its base-layer consensus rules. The Shielded Bitcoin proposal uses zero-knowledge proofs, the same broad style of cryptography associated with Zcash, to hide senders, recipients, and transaction amounts without a soft fork.

Alloc Init researchers describe a system where BTC moves into encrypted notes, transfers happen inside a shielded pool, and withdrawals break the visible on-chain link. The pool is designed to operate without a company running it.

Timeline3
5d

Alloc Init-linked researcher Lioba Heimbach announced a separate cryptography paper on protected order flow.

5d

The Shielded Bitcoin proposal was publicly described as a protocol for private Bitcoin transfers without a soft fork.

4d

The proposal was reported as using zero-knowledge proofs for Zcash-style private Bitcoin transfers.

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