🪛Enhanced Transaction Anonymity

The operational mechanics of Shadow Bridge are straightforward—users deposit cryptocurrency into a designated pool, and upon withdrawal at a later stage, the origins of the tokens become untraceable. During the deposit phase, users transmit a unique cryptographic hash, known as a commitment, alongside the deposit amount to the Shadow Bridge smart contract. This contract records the deposit and logs the commitment in its deposit ledger. When it comes to withdrawals, users must authenticate their ownership of the deposit by presenting the original secret, selecting a previously unused commitment from the smart contract's records. Utilizing zkSNARKs technology, this verification process ensures the anonymity of the deposit's origin without revealing specific details linked to the secret. Once verified, the smart contract executes the transaction, sending the initial funds to the specified withdrawal address in such a way that external observers are unable to trace the withdrawal back to its initial deposit.