Key Takeaways:
- Starknet is activating Shielded Mode to introduce native protocol-level privacy for decentralized finance (DeFi) on its Layer 2 network.
- Powered by the new STRK20 framework, the upgrade allows users to shield balances, transfers, and transactions while maintaining full composability for activities like swapping, lending, and staking.
- The infrastructure is already operational via strkBTC (shielded Bitcoin), and the network-wide activation will allow users to seamlessly choose between public and shielded modes per asset.
Unlocking Composable Privacy on Layer 2
Starknet is finally set to fully activate its Shielded Mode, which will finally give Starknet’s Layer 2 blockchain its much-needed protocol-level privacy features for DeFi applications.
Shielded mode is on.
Join us.https://t.co/wgZT1idhML pic.twitter.com/Cx4P21sjgZ
— StarkWare 🥷 (@StarkWareLtd) June 8, 2026
After years of the absolute visibility of balances and transactions performed on Starknet, Shielded Mode will finally allow Starknet users to hide their balances and transactions from public view.
Technical Architecture of the STRK20 Framework
To provide users with an experience that hides their digital assets from public view while maintaining full interaction with other Starknet platforms, Starknet engineers have created the STRK20 framework.
This framework allows developers to create smart contracts that allow for both public and shielded transactions for the same digital token. These shielded tokens remain fully compatible with other Starknet applications and will not prevent users from interacting with other platforms and protocols.
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Current Network Deployment and Broad Activation
The shielding technology has already been deployed on Starknet’s mainnet using strkBTC, the blockchain’s native shielded form of Bitcoin.
Users can deposit, shield, and unshield strkBTC using Web3 wallets such as Ready and Xverse. Upon activation, however, this same technology will roll out across the majority of Starknet’s ecosystem tokens and decentralized applications.
From Ecosystem-Wide Scaling to Institutional Appeal
Upon activation, Starknet will roll out Shielded Mode to all of its decentralized applications and protocols. Users will have the ability to trade tokens privately, deposit into lending protocols, or stake tokens without revealing any information about their transactions.
The privacy features provided by Shielded Mode allow Starknet to remain competitive in a blockchain market dominated by other Layer 2 blockchain competitors that focus solely on the speed of their blockchain.
Furthermore, Starknet’s focus on privacy appeals to two separate target markets for the blockchain: retail users that desire as much privacy in their transactions as possible and financial institutions that are legally required to maintain absolute confidentiality of transactions.
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