Crypto has already proven that privacy can work. The harder problem is making people use it.
There are a growing number of privacy protocols in crypto. Some, like Zcash and Monero, build privacy into a single asset. Others, like Railgun, add a shielding layer on top of a chain. Others provide dedicated execution environments, fully homomorphic encryption systems, or permissioned chains.
These approaches vary in what they protect, how they work, and what they ask users to give up. But the same issues show up across the category, privacy comes with a tradeoff in usability, composability, liquidity, or compatibility.
That is the next problem to solve. Not whether privacy can exist onchain, but whether it can become a normal part of how crypto is used.
Where the leading approaches land and how STRK20 compares
Zcash pioneered shielded transactions. It has one of the longest track records of any privacy system in crypto. It’s cryptography is mature, widely studied, and battle-tested over years of real usage. But its trade-off is scope. Privacy applies to a single asset, with no DeFi composability, and no way to privately interact with the broader onchain economy. STRK20 brings that asset-level privacy model to any ERC-20 asset on Starknet, so a shielded balance can still swap against existing AMMs rather than sitting in an isolated asset.
Railgun made private DeFi possible on existing EVM chains without requiring custom changes from every app. But privacy still sits above the chain as an application layer, which creates trade-offs: extra shield/unshield steps, delays on newly shielded tokens, and fees that scale with position size. STRK20 is tightly integrated with the Starknet’s protocol layer, rather than a bolt-on application above it, so shielding is a one-click, near-instantaneous action with no delays or holds on newly shielded tokens.
Canton takes a different path. It offers institutional-grade privacy through permissioned access control, where participants only see the data they are authorised to see. Its trade-off is openness. It is designed for controlled institutional environments, not open DeFi participation or crypto-native composability. STRK20 offers a different path, DeFi composable, open, and built for the full range of onchain participants.
Want to see how the trade-offs compare? We built an open-source Privacy Grid covering 15 protocols across a number of key dimensions: https://privacygrid.dev/
The gaps that still matter
Across the landscape, four gaps appear consistently.
Usability. Most privacy systems still require new wallets, separate key management, or entirely new workflows. Most ask users to manage independent note secrets. And shielding speed varies enormously, from seconds to mandatory waiting periods of an hour or more. For most users, privacy remains something they have to go out of their way to use, not something built into the tools they already use.
Composability. Shielded funds are often cut off from the applications and liquidity that make crypto useful. Some systems require custom integrations, others move activity into separate environments. In both cases, private assets become less useful than public ones.
Compliance. Most privacy protocols offer some form of selective disclosure, viewing keys, compliance tools, or audit APIs. But the mechanisms vary widely. Many rely on users voluntarily sharing keys, which doesn’t meet the standard for lawful investigation. Others can only prove a specific deposit-withdrawal link, not trace funds through the pool. And proofs-of-innocence models carry a known timing gap: funds can be withdrawn before they’re flagged. For institutions the standard is higher, confidentiality needs to coexist with a reliable path for lawful, scoped disclosure.
Cost. Many privacy systems charge a percentage of the amount shielded, so protecting a larger position costs more even though the work is identical. That makes privacy akin to a luxury rather than a default, penalizing users precisely when privacy matters most.
These are the gaps STRK20 is designed to address.
What STRK20 enables
STRK20 brings privacy to any ERC-20 assets on Starknet. It allows users to shield tokens, transfer them privately, and interact with applications from the wallet layer. The difference is where privacy lives. STRK20 does not make privacy a separate destination. It makes privacy a capability of the asset itself.
For users, that means shielding assets through supported wallets, moving between public and private states without a separate workflow, and keeping balances and transfers private when needed.
For builders, it means adding private flows without building a separate privacy stack. Privacy becomes accessible through wallets and compatible with application-level activity.
For asset issuers, it means ERC20 assets can gain privacy capabilities on Starknet without creating separate private tokens or fragmenting liquidity.
For institutions, it means onchain activity can be confidential by default while remaining disclosable under legitimate process. Each viewing key is held by an independent Audit Firm. Under a valid legal request, the Audit Firm can reconstruct the audit trail for that one user’s transactions without exposing the entire pool. Because it works even after funds have moved, this retroactive de-anonymization closes the timing gap that limits proof-of-innocence models.
On cost, STRK20 is designed to be one of the most cost-scalable privacy solutions in crypto. Unlike variable-fee models, STRK20 uses a flat fee per privacy action, currently 4 STRK, so the cost does not rise with the size of the balance being protected. Privacy should be predictable whether a user is shielding a small amount or a much larger position.
Starknet: Practical privacy
Different privacy systems optimise for different things. STRK20 is optimised for privacy where crypto actually happens: inside assets, through wallets, and across applications.
This is where Starknet’s advantage becomes visible. Not as architecture for architecture’s sake, but as applications with fewer compromises. Assets can move between public and private state. Wallets can make shielding feel like a normal user action. DeFi can support private flows without forcing users into a separate ecosystem.
STARKs provide the cryptographic foundation. Cairo gives Starknet an application environment designed around provable computation. Together, they make it possible for privacy to sit closer to the asset and application layer, rather than being bolted onto the user journey.
The technology to make onchain transactions private has existed for years. What has been missing is privacy that users can access without giving up everything else that makes crypto useful.
That is the shift STRK20 introduces: Privacy that works for crypto, built into the asset instead of bolted onto the user journey.
Coming in June, builders will be able to integrate STRK20 through the SDK or wallet API, bringing private flows directly into Starknet apps. Visit the website here: https://strk20.starknet.io/
Disclaimer:
This content is for informational purposes only and should not be construed as investment, legal, or financial advice. It does not constitute an offer to sell or solicitation to buy and is not an endorsement of any product. Participation involves risk. Users should do their own research and/or consult with qualified professional advisors before making any decisions.
Participation in strk20s will involve screening at points of entry and exit and complete privacy cannot be guaranteed since certain activity may be visible through a viewing key (where required for regulatory purposes).
