Shielded Address Definition
A shielded address is a type of cryptocurrency address used in privacy-focused blockchain networks, such as Zcash, to ensure transaction details are not publicly visible on the blockchain. Unlike transparent addresses, which display transaction details openly, shielded addresses hide the sender, receiver, and transaction amount information.
Shielded Address Key Points
- Shielded addresses are used to maintain privacy in blockchain transactions.
- They hide the details of the sender, receiver, and transaction amount.
- Primarily used in privacy-focused cryptocurrencies like Zcash.
- They use advanced cryptographic techniques to ensure privacy.
- Unlike transparent addresses, transactions between shielded addresses are not publicly visible on the blockchain.
What is a Shielded Address?
A shielded address is a unique identifier used in some cryptocurrencies to facilitate private transactions. It is a type of address that hides the details of a transaction, including the identities of the sender and receiver, as well as the transaction amount. This is in contrast to transparent addresses, where these details are publicly visible on the blockchain.
Why is a Shielded Address Used?
The primary reason for using a shielded address is to maintain privacy in blockchain transactions. While the transparency of blockchain technology is one of its key strengths, it can also be a drawback in terms of privacy. Shielded addresses allow users to transact on the blockchain without revealing their identities or the details of their transactions.
Where is a Shielded Address Used?
Shielded addresses are primarily used in privacy-focused cryptocurrencies like Zcash. Zcash uses a type of zero-knowledge proof called zk-SNARKs to ensure the privacy of transactions. When a transaction is made between shielded addresses, the only information that is publicly visible on the blockchain is that a transaction occurred.
When is a Shielded Address Used?
A shielded address is used whenever a user wants to make a private transaction on a blockchain network that supports this feature. It can be used for any type of transaction, whether it’s sending or receiving funds, without revealing any transaction details to the public.
How Does a Shielded Address Work?
A shielded address works by using advanced cryptographic techniques to hide the details of a transaction. When a transaction is made, the sender generates a proof that they have the necessary funds to make the transaction, without revealing the exact amount. This proof is then verified by the network, and the transaction is added to the blockchain. However, the details of the transaction, including the sender, receiver, and transaction amount, are hidden from public view.
