Starknet introduced STRK20, a zero-knowledge privacy framework for ERC-20 tokens, while Sui launched confidential transfers with compliance-focused disclosure tools.
Crypto News
Two separate blockchain networks launched privacy features on June 9 that are designed to shield transaction data while keeping disclosure mechanisms available for regulatory and compliance use. Starknet released STRK20, a zero-knowledge (ZK) privacy framework for ERC-20 tokens, while Sui launched a public beta for confidential transfers.
How STRK20 Works
STRK20 allows any ERC-20 asset on Starknet to operate with shielded balances and private transfers. Developers can add that functionality without building a separate privacy layer. The framework supports transfers, swaps, lending, staking, and payments within a single integrated system.
StarkWare and the Starknet Foundation drew a clear line between STRK20 and mixing services. A mixer routes assets through a separate destination to break the transaction trail. STRK20 instead embeds shielding directly into the asset itself, making privacy a standard operating mode rather than a separate step. Damian Chen, VP of Growth at the Starknet Foundation, described the result as “practical privacy in the truest sense.”
The framework includes viewing keys that allow selective disclosure of wallet activity. That disclosure is only available in response to legally binding requests. All other transaction data remains hidden from public view.
StarkWare CEO Eli Ben-Sasson was precise about what the compliance-ready label does and does not mean. He said STRK20 operates on a risk-based model in which privacy is conditional rather than absolute. Screening is applied when assets enter the shielded pool. Disclosure is available via viewing keys when a lawful request is made. Ben-Sasson added that the framework provides the infrastructure for disclosure but does not itself determine legal compliance.
Sui’s confidential transfers feature works differently. It conceals transaction amounts rather than full transaction flows. Authorized parties can still access that data for auditing or compliance purposes when required.
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