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lines changed Original file line number Diff line number Diff line change @@ -110,6 +110,12 @@ supported shielded transfers (also known as encrypted transfers).
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This mechanism allows an account to "shield" part of its balance,
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cryptographically encrypting it so that the amount cannot be inspected
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except by the owner of the account (using its secret encryption key).
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+ (It is possible for a sufficient combination of identity disclosure
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+ authorities (e.g. 2 of 3) to act in concert with the identity provider
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+ for an account to recover the secret encryption key (for instance, if
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+ compelled to do so by legal authorities) and thus decrypt the shielded
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+ balance and transfers on that account.)
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+
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An account can transfer an amount from its shielded balance to another
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account. While the sender and receiver are publicly visible, the exact
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amount transferred (in CCD) is not. An account can also decrypt funds from
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