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New Shielded Bitcoin protocol enables private transactions on Bitcoin without consensus changes

Protocol Fundamentals
25 Sep 2026
Decrypt
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Bullish
New Shielded Bitcoin protocol enables private transactions on Bitcoin without consensus changes

Researchers have introduced Shielded Bitcoin, a protocol allowing private transfers on Bitcoin's base layer by using encrypted notes and zero-knowledge proofs inspired by Zcash. This design hides sender, recipient, and amount details without altering Bitcoin's consensus rules, publishing transfers as data verified by separate software. While internal transfers are covered, mechanisms for moving BTC in and out of the shielded system will be detailed in a future paper. The protocol aims to enhance Bitcoin privacy while maintaining network compatibility, with potential institutional compliance features also proposed.

Zcash (ZEC) shows strong activity on Pluang with a market cap of Rp7,04 trillion and a 24-hour trading volume of Rp787,62 million as of Sep 25, 2026, 17:01 WIB. The price of ZEC is Rp28.342.991, up 7.12% in the past day, reflecting notable investor interest. This interest aligns with the news of a new protocol inspired by Zcash's privacy features, aiming to enhance Bitcoin's privacy without changing its consensus rules.

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