Would Kaspa’s new Toccata capabilities make it possible to develop an optional privacy layer similar in concept to Litecoin’s MWEB?
The regular Kaspa network could remain fully transparent, while users who wanted additional financial privacy could move KAS into a shielded pool or application, make confidential transactions, and later move their KAS back to the transparent base layer.
Toccata now provides covenants, transaction introspection and zero-knowledge-proof verification. Could these tools support an optional system that conceals transaction amounts and addresses without interfering with Kaspa’s speed, Proof-of-Work security or exchange compatibility?
I believe optional privacy could make Kaspa considerably more useful as digital money, particularly as financial privacy becomes more important. It could also avoid some of the regulatory and exchange problems associated with making every base-layer transaction private.
Has anyone begun researching such a design? If not, would the developers consider exploring it as a future application, research project or Kaspa Improvement Proposal?