🛡️Shielding Tokens
Shielding Tokens:
The first step in using the KALIUM Privacy System is to privatize cryptocurrency tokens.
Shielding is the process of transferring funds from a public 0x address to a private 0zk address within the user's wallet.
Once funds are in the 0zk address, users gain the ability to engage in private transactions, swaps, and DeFi activities.
The process of shielding can be applied to virtually any token on the public blockchain, including ERC-20 tokens and ERC-721 NFTs.
Shielding Process:
Users initiate the shielding process by executing a shield transaction.
A shield transaction contains public data, including information about the asset, the amount being shielded, and other associated values.
KALIUM's smart contracts utilize this public data to compute a commitment known as a "note."
Notes represent hashed values of the initial public data provided by the user during the shielding process.
These hashed notes (circuit outputs) cannot be reversed to reveal the original input, ensuring the privacy of transaction and asset data.
Inputs and outputs are essential in obscuring the transaction and asset data that KALIUM users aim to keep confidential.
Private (Shielded) vs. Transparent Transactions
Before you register on an exchange or download a wallet, it's essential to understand the distinction between private and transparent transactions, both of which are supported by KALIUM.
When you use a digital wallet for sending and receiving KALIUM, it will either:
Shield all your transactions and encrypt your information, ensuring that addresses, wallet history, and memos remain private and protected from public view.
Provide you with the option to choose between private or transparent transactions.
Only allow transparent transactions, exposing all your wallet and transaction details to the public blockchain. This is the case with Bitcoin and most other cryptocurrencies, which primarily support transparent transactions.
To safeguard the confidentiality of your transactions and financial history, it is advisable to use a wallet or exchange that defaults to a 'shielded' mode, ensuring that your information remains private by default.
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