Researchers propose Zcash-style private transfers for Bitcoin

Bitcoin researchers have proposed a "Shielded Bitcoin" system that could hide transaction amounts and counterparties without a soft fork or consensus rule changes, CryptoSlate reported. In a paper released on Sept. 24, the [[alloc] init] research team outlined a metaprotocol for implementing ZK proofs, encrypted notes and public nullifiers, core privacy features used by Zcash, on top of Bitcoin. The current design records encrypted transfer data in OP_RETURN, although some metadata, including transaction timing, fees and the number of inputs and outputs, would still remain visible. André Dragosch, head of research at Bitwise Europe, said the design could pose a potential challenge to privacy coins. Amid renewed attention on Zcash's privacy features and price reappraisal, the report said a future implementation of Shielded Bitcoin could offer an option for securing similar transaction privacy while continuing to use Bitcoin itself.