Starknet, an Ethereum layer-2 network, has introduced a wallet privacy function that enables users to engage with decentralized finance applications without publicly associating their activities with primary wallet addresses. The feature, called Shadow Accounts, generates distinct, persistent addresses for each application. Users can fund these accounts using shielded balances stored in the network’s STRK20 privacy pool. This setup allows individuals to sustain lending, trading or other DeFi positions under separate onchain identities. The privacy mechanism conceals the link between the shadow account and the funding wallet. Nevertheless, balances, transactions and positions of these shadow accounts remain publicly viewable onchain, as noted by Starknet. After a DeFi platform integrates the capability, users can connect their wallets, toggle between public and private modes and deposit assets into a vault. Their Shadow Accounts then preserve positions until funds are withdrawn back into a shielded balance. StarkWare indicated that the functionality may later expand to include liquidity provision, lending, borrowing, staking, derivatives trading, prediction markets and NFT marketplaces. The rollout follows the company’s broader initiative to enhance blockchain privacy. In June, StarkWare unveiled its STRK20 privacy framework, which supports private transfers and shielded token balances on Starknet. The same month, the firm demonstrated a Private Know Your Customer system that permitted users to confirm personal information without disclosing full identity documents. Related: StarkWare unveils Starknet quantum roadmap, says industry has no excuseCointelegraph is committed to independent, transparent journalism. This news article is produced in accordance with Cointelegraph’s Editorial Policy and aims to provide accurate and timely information. Readers are encouraged to verify information independently.