A shielded transaction refers to a type of transaction that enhances privacy by concealing the details of the sender, receiver, and transaction amount. This feature is particularly prominent in certain cryptocurrencies like Zcash, which utilize advanced cryptographic techniques known as zk-SNARKs (Zero-Knowledge Succinct Non-Interactive Arguments of Knowledge).In a shielded transaction, while the transaction is recorded on the blockchain, the specifics remain hidden. Only the parties involved in the transaction can see the details, maintaining confidentiality. This contrasts with standard transactions, where such information is visible to anyone with access to the blockchain.The main advantage of shielded transactions lies in providing greater anonymity for users. This is beneficial for those who prioritize privacy for personal reasons or seek to protect themselves from unwanted scrutiny. However, this added layer of anonymity has also raised concerns regarding potential misuse in illegal activities. Overall, shielded transactions aim to balance transparency with the need for privacy in financial interactions.