> 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/3.-zero-knowledge-privacy-system/3.2-shielded-pool-design.md).

# 3.2 Shielded Pool Design

The shielded pool is the center of Xera’s confidentiality model. It contains encrypted commitments representing private balances. Each note is indistinguishable from others, which creates a unified anonymity set. As more users transact within the shielded pool, the anonymity set expands, strengthening the privacy guarantees for all participants.

Transactions modify the shielded pool through nullifiers and new commitments. Nullifiers reveal only that a note has been spent, not which note it was. Commitments representing outputs enter the pool as new notes. This design eliminates linkability across transfers, preventing adversaries from reconstructing transaction paths even when performing temporal or statistical analysis.

The shielded pool is engineered to support migrations to improved proof systems without altering the user-facing experience. This ensures the protocol remains adaptable as cryptographic research advances.


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