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Shielded Transaction
A shielded transaction is a type of transaction that hides the sender, receiver, and transaction amount from the public blockchain ledger. These transactions use zero-knowledge proofs, a cryptographic technique that allows one party to prove the validity of a transaction without revealing any details. Shielded transactions are primarily associated with privacy coins like Zcash, which offers both transparent and shielded addresses. Users can choose to send shielded transactions to enhance their privacy. Example: On the Zcash network, shielded transactions allow users to transfer funds without exposing sensitive details, offering greater privacy than traditional transparent transactions.
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