Private BTC Transfers Proposed Via Zero-Knowledge Proofs

Researchers at Alloc Init have proposed a way to enable Zcash-style private Bitcoin transfers without modifying the network's consensus layer. The proposal leverages the mixer logic used by Tornado Cash, allowing users to transfer BTC privately using zero-knowledge (ZK) proofs.

The ZK proofs shield the sender, receiver, and amount being transferred, making it impossible for anyone to track the transactions. At the exit point, a new address is assigned to the user, ensuring complete anonymity.

Clara Shikheman, head of Alloc Init, emphasized that no soft forks, bridges, or operators are required for this proposal to work, simply using Bitcoin as intended.

Eli Ben-Sasson, founder of Starknet and a pioneer of ZK proofs, praised the direction of this research, stating it aligns with their original vision of bringing privacy and scalability to Bitcoin via ZK technology.