# Shielding

Shield transactions are executed publicly, using a public wallet.&#x20;

Under the hood, the shield action sends ERC-20 tokens into the RAILGUN contract, where they are associated with a RAILGUN Wallet and a private balance. Once shielded, the owning RAILGUN Wallet can initiate [private transfers](/developer-guide/wallet/transactions/private-transfers.md) and [cross-contract calls](/developer-guide/wallet/transactions/cross-contract-calls.md) to interact with external smart contracts.

***NOTE***: Do *not* shield rebase tokens into RAILGUN, as these are not supported. For a list of rebase tokens, see [Rebase Token List (Coingecko)](https://www.coingecko.com/en/categories/rebase-tokens).


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