TREE NEWS update: Starknet has introduced Shadow Accounts, a wallet privacy feature that lets users obscure the connection between their main wallets and their DeFi activity. Transactions remain visible onchain, but the link between a user’s primary wallet and that activity is hidden. The feature is aimed at users who want to keep their DeFi positions separate from their main wallet identity.
Starknet Launches Shadow Accounts to Hide Wallet Links to DeFi Activity
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AI take
Privacy features like Shadow Accounts sit in a contested space: they address a real demand for separating onchain identity from trading activity, but they also draw scrutiny from regulators and compliance teams who rely on wallet-linkage for tracing. The design choice here is notable — obfuscating the link rather than the transaction itself keeps the chain auditable while shifting where visibility ends. Whether other networks adopt similar link-hiding tools, and how regulators respond, is the open question.
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