Researchers propose a Shielded Bitcoin privacy transfer scheme that can hide both parties to the transaction and the transfer amount.

According to TechFlow, on September 25, Decrypt reported that the Bitcoin cryptography development team [[alloc] init] released the Shielded Bitcoin design proposal, which aims to enable Zcash-style private transactions on the Bitcoin mainnet without modifying the network's existing consensus rules.

This approach conceals the sender, recipient, and transfer amount through encrypted Notes and zero-knowledge proofs, leveraging a Nullifier to prevent double-spending. However, the current design only covers internal transfers within the privacy system; the deposit and withdrawal mechanisms for BTC remain outside this initial scope, and the team plans to elaborate on them in subsequent papers.