> For the complete documentation index, see [llms.txt](https://docs.xeratoken.xyz/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.xeratoken.xyz/2.-protocol-overview/2.3-transaction-model.md).

# 2.3 Transaction Model

Xera supports three categories of transactions, enabling flexible movement between confidentiality and transparency. Transparent transactions expose sender, receiver, and amount, mirroring traditional blockchain behavior. These transfers are useful for regulated workflows or interactions with centralized exchanges. Shielded transactions conceal all identifiable information using commitments, nullifiers, and zero-knowledge proofs. They serve as the default mechanism for private electronic cash.

Hybrid transactions bridge the two domains:

* t → z: deposits convert transparent funds into shielded notes.
* z → z: private transfers create new shielded outputs without revealing graph structure.
* z → t: withdrawals return funds to the transparent domain.

This model ensures compatibility with ecosystems that rely on transparency while preserving confidentiality for everyday use. It prevents privacy from isolating users or limiting interoperability with external platforms. Xera balances these domains by allowing value to flow freely while maintaining strict privacy guarantees within the shielded pool.


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