According to The Block, Starknet has launched the zero-knowledge privacy framework STRK20, which provides balance shielding and private transfer capabilities for any ERC20 asset on the network, and has first been implemented on strkBTC.
This framework allows developers to introduce privacy features for scenarios such as transfers, exchanges, lending, staking, payments, and donations without the need to build a separate privacy system.
STRK20 embeds a "shielding" mode in the asset path, rather than using a traditional mixer structure, while introducing a viewing key mechanism that selectively discloses specific wallet information only upon receiving legally valid requests, balancing privacy protection and compliance requirements.
StarkWare CEO Eli Ben-Sasson believes that such ZK privacy solutions are expected to make regulatory investigations more precise and reduce the collateral impact on a large number of wallets.
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