Damus
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Mike
@Alchemike
https://www.allocinit.xyz/uploads/shielded-bitcoin.pdf

RESEARCHERS PROPOSE “SHIELDED BITCOIN” FOR PRIVATE TRANSFERS DIRECTLY ON BITCOIN L1

The proposed metaprotocol would hide transaction amounts and counterparties without a soft fork, new blockchain, trusted operators or bridges.

Value is represented through encrypted “notes,” with transfers published to Bitcoin alongside zero-knowledge proofs verifying their validity.

Bitcoin itself only stores and orders the encrypted data, while separate software verifies the proofs and independently derives the Shielded Bitcoin state.

A companion paper will detail how bitcoin can enter and exit the shielded system using L1 security vaults via PIPEs.
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Mike · 5d
https://allocinit.notion.site/Shielded-Bitcoin-Private-Transfers-on-Bitcoin-L1-3e436974087f80f586acf2462bc547a5