Overview
A private transaction is one whose details are hidden using encryption or zero-knowledge proofs. It protects user privacy on public blockchains. Private transactions are enabled by ZK technology.
How It Works
The transaction's amounts, sender, or receiver are concealed using cryptographic techniques. Verifiers confirm validity without seeing details. This preserves privacy while maintaining integrity.
Why It Matters
Privacy is a core user need in finance and identity. Private transactions enable confidential payments and compliance without surveillance. They are a leading ZK application.
Related Concepts
Private transactions build on Zero-Knowledge Proofs and zk-SNARKs. They relate to Privacy and Verifiable Compute.