Shielded Transaction
A shielded transaction is a type of cryptocurrency transaction that provides enhanced privacy and security for the sender, recipient, and amount of the transaction. Shielded transactions are used to protect users from malicious actors attempting to view their financial activity or steal funds. This is achieved by encrypting information about the sender, recipient and amount associated with each transaction using advanced cryptography techniques such as zero-knowledge proofs.
In order to use shielded transactions, both parties must be enabled on a particular blockchain network that supports this feature. For example, Zcash is one of the most popular cryptocurrencies that supports shielded transactions which uses zk-SNARKs technology (Zero-Knowledge Succinct Non-Interactive Argument of Knowledge) in order to hide sensitive details while still providing cryptographic proof that no double spending has occurred on its platform. In addition, other networks like Monero also support this type of transaction but use different technologies such as Ring Signatures and Stealth Addresses instead.
Overall, shielded transactions offer an additional layer of security when it comes to sending cryptocurrency payments and can help prevent malicious actors from viewing your financial activity or stealing your funds.
