Ethereum Co-Founder Vitalik Explains the Benefits of “Stealth Addresses”

Multi-address model that Ethereum aims for

In a research blog published on the 20th, Ethereum co-founder Vitalik Buterin introduced the concept of “stealth addresses” aimed at protecting the privacy of Ethereum users.

No word on when it will be implemented, but Buterin argues that “stealth addresses could be implemented fairly quickly and could provide a significant boost to practical user privacy on Ethereum.”

Ethereum Co-Founder Buterin Proposes Stealth Address Implementation to Increase NFT Privacy Features

What is a stealth address

A stealth address is basically an idea to prepare a separate account that is used only once for trading.

It is based on a mechanism that allows the generation of a cryptographically obfuscated public address, allowing funds to be received at a stealth address created in a private manner, and withdrawn only by the holder of a code called a “spending key”. .

A new stealth address is generated each time someone issues a transaction, making it difficult to track transactions or identify who is sending or receiving assets.

Stealth addresses allow users to keep their transaction histories private, thereby avoiding the risk of being the target of crime or being known by friends, co-workers, and business partners. Buterin said:

The main difference from existing privacy services, such as the mixing service Tornado Cash, is not only crypto assets (virtual currency) Ethereum (ETH) and highly liquid ERC20 tokens, but also NFTs (non-fungible tokens) and minor ERC20 tokens. can also be used.

A development challenge is the need for a wallet provider that supports stealth addresses so that they can be used without the need for complicated operations. Currently, EIP (Ethereum Improvement Proposal)-5564 is in progress to define the detailed design for implementation.

Thanks to @nero_eth@UmbraCash@msolomon44@BenDiFrancesco for their active contributions to Ethereum privacy

You can check the EIP here: https://t.co/o75qBSKyom

You can also donate to @UmbraCash‘s current Gitcoin round here: https://t.co/MBSBuO2PTh

— Chris | Yicheng (@ChrisYicheng) January 23, 2023

Also, ETH is required to pay the transaction fee (gas fee) to transfer assets from the stealth address to the account. However, sending ETH to a stealth address from another address creates a link with the user.

Mr. Buterin presents a transaction aggregator as a solution to this. Transaction aggregators can process multiple transactions at once to withdraw assets deposited at separate stealth addresses by paying with prepaid tickets.

U.S. lawmakers send letter to Treasury Secretary Yellen about Tornado Cash sanctions

Ethereum Co-Founder Vitalik Explains the Benefits of “Stealth Addresses” appeared first on Our Bitcoin News.