RE: LeoThread 2025-07-20 06:15

Part 7/9:

To address these shortcomings, Andreas introduced confidential transactions as a promising solution. Confidential transactions leverage advanced cryptographic techniques—specifically, homomorphic encryption and ring signatures—to conceal transaction amounts and enhance privacy—making it significantly more difficult for outsiders to analyze and de-anonymize transactions.

Confidential Transactions: The Future of Private Payments

Confidential transactions are currently being tested on the Elements sidechain, developed by Blockstream. This platform serves as a sandbox for exploring new privacy features before they are integrated into Bitcoin’s main network. Gregory Maxwell, Pieter Wuille, and a broader team of developers are actively working on refining this technology.