Crypto Terms:
Letter S
What is Shielded Transaction?
Meaning:
Shielded Transaction -
a transaction that takes place between two shielded addresses is called a shielded transaction.
Let's find out Shielded Transaction meaning, definition in crypto, what is Shielded Transaction, and all other detailed facts.
Cryptocurrency transactions (that have two types of addresses) can go a few ways.
A transparent address to a transparent address would result in an unshielded transaction, a transparent address to a shielded address would result in a shielded transaction, a shielded address to a shielded address would result in a shielded transaction, and a shielded address to a transparent address would result in an unshielded transaction.
Furthermore, a shielded address uses a zero-knowledge protocol (a way of proving that the statement is true) to enable the exchange of information to be encrypted by the remaining verifiable network nodes.
To be exact, a transaction that takes place between two shielded addresses is called a shielded transaction. This means that all of the information such as the transaction volume, and users' addresses are shielded from outsiders. However, the exception is transferring funds from Sprout to Sapling shielding addresses, and vice versa.
Zcash, for example, distinguishes between transparent and shielded addresses. Shielded addresses are not the same as transparent addresses. They're similar to the Bitcoin protocol's public addresses though. Transparent addresses cooperate with the Transparent Value Pool. It controls the exchange data that is publicly shown, also enabling it to be seen on the Zcash blockchain at any given time.
Senders to a shielded address can also select whether or not to include an encrypted note. The sender's address is hidden on the transaction receipt in their wallet, and the receivers can only see the amount or an encrypted memo delivered to their address.
Additionally, shielded addresses are obligated to generate zk-SNARKS, to make sure the transaction is valid.
All in all, shielded addresses successfully achieve a higher level of privacy and security, differently than transparent ones.
cryptocurrency. The ultimate goal is to create excitement around the initiative so that people believe in it and <strong>want to invest in it<\/strong>. The more people want to invest, the higher the demand for the token becomes, and the more the price rises.<\/p>\n<p>Traditional financial markets prohibit the use of shilling. However, because there are <strong>no strict rules for cryptocurrencies yet<\/strong>, it's unclear whether it is considered lawful or illegal advertising. Besides, keep in mind that crypto shilling is not obvious, it's usually disguised. Therefore, you should always keep your eyes open for the red flags. The main red flags include:<\/p>\n<ul>\n<li>When an <strong>influencer<\/strong> is promoting an unknown cryptocurrency.<\/li>\n<li>When an individual or individuals invest a large amount of money into a specific cryptocurrency.<\/li>\n<li>When founders or members of the team secretly endorse their tokens.<\/li>\n<\/ul>","definition":"a term used to describe the practice of promoting any cryptocurrency through implicit advertising, before it ends in a rug pull.","status":"published","meta_title":"What is Shilling? Definition & Meaning | Crypto Wiki","meta_description":"Shilling meaning: Shilling - a term used to describe the practice of promoting any cryptocurrency through implicit advertising, before it ends in a rug pull.","meta_keywords":null}"
:prev-section="{"id":939,"wikipedia_url":"https:\/\/en.wikipedia.org\/wiki\/Cryptocurrency_wallet","level":"medium","author_id":1,"created_at":"2023-06-19T06:59:01.000000Z","updated_at":"2023-11-10T18:45:14.000000Z","slug":"what-is-shielded-address","title":"What is Shielded Address?","section":"S","keyword":"Shielded Address","content":"<p>A <strong>shielded address<\/strong> is an alternative method of executing financial transactions that are secure and confidential. <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-cryptocurrency/">Cryptocurrencies and <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-blockchain/">blockchain technology have prompted the interest for methods of doing secure transactions to skyrocket. That’s where shielded addresses come in handy.<\/p>\n<p>To be more specific, a shielded transaction is a type of transaction that uses \"mixing\" as a <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-cryptography/">cryptographic approach in order to keep both the sender's and receiver's addresses completely private.<\/p>\n<p>In order to do this, a new address must be formed particularly for the transaction. Additionally, the funds must be sent from the initial sender address to this newly produced address, while equal amounts must be transferred from another newly generated address back to the receiver's initial address.<\/p>\n<p>A mixer service only works externally from blockchain and is typically only utilized for every transaction, hence the two newly produced addresses are, in fact, generated by a mixer service. Therefore, this ensures that it would be impossible to figure out the exact location a specific transaction came from or ended up in. So, complete anonymity is a guarantee for senders as well as receivers.<\/p>\n<p>Because only these <strong>two addresses are used <\/strong>and no one can tell who owns them or where their funds came from or went to.<\/p>\n<h2>The Main Advantages of Shielded Transaction<\/h2>\n<p>It is preferable not to link your transactions on the blockchain for overseas payments or purchases if you want to distinguish your spending patterns from others.<\/p>\n<p>Furthermore, the shielded transaction allows for greater <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-fungible/">fungibility on the blockchain by enabling users to transmit payments without disclosing their transacting partners, quantities sent, or even the transaction records. This is accomplished by generating a new address for each transaction that can only be spent with the user's <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-private-key-secret-key/">private key<\/strong><\/a>.<\/p>\n<p>Since Zcash transactions are not completely visible, the quantity of information that can be extracted from the blockchain is restricted. This makes it harder for outside spectators to establish how much overall revenue is being invested in certain use cases, such as gambling websites.<\/p>\n<h2>What is Zcash?<\/h2>\n<p><strong>Zcash<\/strong> was the first to use zero-knowledge proofs. Additionally, it's considered to be the first \"miner-friendly\" <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-proof-of-work-pow/">proof-of-work (PoW)<\/strong><\/a> coin with no founders' reward.<\/p>\n<p>Furthermore, Zcash transactions are broadcast on a public blockchain, but the sender, receiver, and transaction amount stay confidential. This is done by the use of <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-zk-snarks/">zk-SNARK, a zero-knowledge proof structure.<\/p>\n<p>There are two types of addresses on the Zcash protocol: transparent and shielded.<\/p>\n<p>Transparent addresses work in the same way as Bitcoin addresses.<\/p>","definition":"refers to an alternative method of doing a financial transaction that is safe as well as confidential.","status":"published","meta_title":"What is Shielded Address? Definition & Meaning | Crypto Wiki","meta_description":"Shielded Address meaning: Shielded Address - refers to an alternative method of doing a financial transaction that is safe as well as confidential.","meta_keywords":null}"
:model="{"id":1,"wikipedia_url":"https:\/\/en.wikipedia.org\/wiki\/Zcash","level":"easy","author_id":1,"created_at":"2023-06-19T06:58:58.000000Z","updated_at":"2023-11-10T18:44:57.000000Z","slug":"what-is-shielded-transaction","title":"What is Shielded Transaction?","section":"S","keyword":"Shielded Transaction","content":"<p>Cryptocurrency transactions (that have two types of addresses) can go a few ways.<\/p>\n<p><strong>A transparent address to a transparent address<\/strong> would result in an unshielded transaction, a transparent address to a shielded address would result in a shielded transaction, a shielded address to a shielded address would result in a shielded transaction, and a shielded address to a transparent address would result in an unshielded transaction.<\/p>\n<p>Furthermore, a shielded address uses a<a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-zero-knowledge-proof/"> zero-knowledge protocol<\/strong><\/a> (a way of proving that the statement is true) to enable the exchange of information to be encrypted by the remaining verifiable network nodes.<\/p>\n<p>To be exact, a transaction that takes place between two shielded addresses is called a shielded transaction. This means that all of the information such as the transaction volume, and users' addresses are shielded from outsiders. However, the exception is transferring funds from <strong>Sprout<\/strong> to Sapling shielding addresses, and vice versa.<\/p>\n<p><a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//goon//zcash/" target=\"_blank\" rel=\"nofollow noindex noopener\"><strong>Zcash<\/strong><\/a>, for example, distinguishes between transparent and shielded addresses. Shielded addresses are not the same as transparent addresses. They're similar to the <a href=https://www.bitdegree.org/"//crypto//buy-bitcoin-btc/">Bitcoin protocol's public addresses though. Transparent addresses cooperate with the Transparent Value Pool. It controls the exchange data that is publicly shown, also enabling it to be seen on the Zcash blockchain at any given time.<\/p>\n<p>Senders to a shielded address can also select whether or not to include <strong>an encrypted note.<\/strong> The sender's address is hidden on the transaction receipt in their <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-wallet/">wallet, and the receivers can only see the amount or an encrypted memo delivered to their address.<\/p>\n<p>Additionally, shielded addresses are obligated to generate <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-zk-snarks/">zk-SNARKS, to make sure the transaction is valid.<\/p>\n<p>All in all, shielded addresses successfully achieve a higher level of privacy and security, differently than transparent ones.<\/p>","definition":"a transaction that takes place between two shielded addresses is called a shielded transaction.","status":"published","meta_title":"What is Shielded Transaction? Definition & Meaning | Crypto Wiki","meta_description":"Shielded Transaction meaning: Shielded Transaction - a transaction that takes place between two shielded addresses is called a shielded transaction.","meta_keywords":null,"author":{"id":1,"user_id":1,"created_at":"2023-05-03T14:30:55.000000Z","updated_at":"2023-05-11T07:18:20.000000Z","title":"Editor-In-Chief","slug":"aaron-s-editor-in-chief","description":"<p>Having completed a Master’s degree on Economics, Politics & Culture for the East Asia region, Aaron has written scientific papers with a comparative analysis of the differences between US’ Western and Japan’s Collective forms of capitalism, 1945-2020.<\/p>\n<p>With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.<\/p>\n<p>Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.<\/p>\n<p>Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.<\/p>","user":{"id":1,"first_name":"Aaron","last_name":"S.","email":"aaron@bitdegree.org","email_sanitized":"aaron@bitdegree.org","email_verified_at":"2023-12-01T09:40:20.000000Z","must_verify_email":false,"is_registered_with_wallet":false,"status":"active","country":"LT","last_connected_ip":"88.119.132.125","image_id":2641,"referral_token":"05TMu2NysXOCn525","referred_by":null,"created_at":"2023-05-03T14:30:55.000000Z","updated_at":"2024-01-09T15:22:21.000000Z","full_name":"Aaron S."}}}"
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current-chapter="S"
current-section="what-is-shielded-transaction">
