Starknet has launched a new privacy feature called Shadow Accounts, designed to help users interact with decentralized finance applications without linking their activity to a primary wallet. The system generates persistent, separate addresses for specific applications, allowing users to maintain distinct onchain identities for trading, lending, and other DeFi operations.
Users can fund these shadow accounts using shielded balances from the network’s STRK20 privacy pool. While the connection between the main wallet and the shadow account remains obscured, the balances, transactions, and positions of the shadow accounts are still publicly visible on the blockchain. The feature requires integration into individual DeFi applications.
StarkWare, the developer behind the network, plans to expand the functionality to include liquidity provision, staking, derivatives trading, and NFT marketplaces. This launch is part of a broader privacy initiative by the company, which previously introduced the STRK20 framework in June to enable private transfers and shielded token balances.
In addition to the privacy pool, StarkWare recently demonstrated a Private Know Your Customer system. This tool allows users to verify personal information without the need to disclose full identity documents. These developments follow the company's ongoing efforts to improve privacy and data security across the Starknet ecosystem.
