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# Private Transfers

Private transfers are the next core milestone because they turn the Vault from an entry/exit proof into a reusable private balance.

## Intended user flow

1. The recipient shares a Vayyl shielded address—not necessarily a public Stellar account.
2. The sender enters an amount and asset.
3. The wallet selects private notes, creates a recipient output and a change output, then proves conservation locally.
4. A relayer publishes nullifiers, commitments, encrypted outputs, and the proof.
5. The recipient wallet discovers and decrypts its output.

## What the proof enforces

* every input note exists in an accepted commitment root;
* the spender controls every input;
* no input nullifier has already appeared;
* input value equals recipient outputs, change, fees, and any public withdrawal;
* outputs are bound to the asset and recipient keys selected by the wallet;
* commitments and nullifiers use the same canonical Poseidon2 encoding as the contract.

## Integration work

The repository already contains payment-circuit work, but a user-ready transfer requires more than a circuit:

* audited two-input/two-output constraints;
* encrypted note payloads and recipient scanning;
* a recoverable shielded-address/key format;
* wallet note selection and concurrency handling;
* relayer fee accounting and retries;
* contract support for atomic nullifier consumption and output insertion;
* privacy-regression tests for amount and timing behavior.

This milestone becomes the common transaction primitive for the higher-order products that follow.


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