Confidential transactions

Confidential transactions (CT) is a cryptographic protocol which results in the amount value of a transaction being encrypted. The encryption is special because it is still possible to verify that no bitcoins can been created or destroyed within a transaction but without revealing the exact transaction amounts.

Confidential transactions requires a softfork consensus change to be added to bitcoin, although they could be added to a sidechain too.

External links

• https://people.xiph.org/~greg/confidential_values.txt
• https://elementsproject.org/features/confidential-transactions
• https://github.com/AdamISZ/ConfidentialTransactionsDoc
• https://joinmarket.me/blog/blog/finessing-commitments/