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Researchers propose Shielded Bitcoin for private transfers without changing Bitcoin's consensus rules.

Protocol Fundamentals
25 Sep 2026
Crypto news
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Researchers propose Shielded Bitcoin for private transfers without changing Bitcoin's consensus rules.

Alloc Init researchers introduced Shielded Bitcoin, a system enabling private Bitcoin transfers using zero-knowledge proofs without requiring changes to Bitcoin's consensus rules. This approach hides sender, receiver, and amount details by moving privacy verification outside Bitcoin's core protocol to separate indexers. While promising enhanced privacy, the system is still experimental, with key components like moving BTC into and out of the shielded pool under development. Initial transaction fees could be higher, and privacy effectiveness depends on user adoption and behavior.

The Bitcoin privacy proposal using zero-knowledge proofs offers a new approach to private transfers without altering Bitcoin's consensus rules. For readers following major cryptocurrencies, here is Pluang's market snapshot as of Sep 25, 2026 11:31 WIB: out of 50 priced major cryptocurrencies, 42 rose and 7 fell today. Notable movers include MANA (Decentraland) at Rp1.585 with a 7.24% increase, SAND (The Sandbox) at Rp769 with a 7.22% increase, and AAVE (Aave) at Rp2.614.474 with a 6.34% increase.

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