Privacy tools have always been heralded as the key to financial freedom in the crypto industry. In the Ethereum ecosystem, the debate surrounding the subject revolves around privacy-preserving transfers of ETH and his ERC20 tokens in the mainstream.
To improve the state of privacy on networks, co-founder Vitalik Buterin proposed a stealth address system.
“Ethereum’s Last Remaining Challenge”
The concept of stealth addresses using elliptic curve cryptography was first introduced in the context of Bitcoin in 2014 by BTC Core developer Peter Todd, obscuring transaction details. In his latest blog post, Buterin acknowledged that privacy is “one of the biggest challenges he has left in his Ethereum ecosystem,” adding, “Everything sent to his blockchain is public. There is,” emphasized the need for privacy in his solution.
Stealth addresses, on the other hand, can help in this regard. Buterin noted that such a mechanism would allow Ethereum wallets to privately receive funds and generate a stealth address for access using a special code called a “spending key.” Did.
Proposed stealth addresses can be generated by either party, but controlled by only one of them. The user who receives the asset generates a Stealth-Her Address and keeps the spending key secret, which is used to generate a Stealth-Her Meta-Address that can be passed to the sender.
This allows the sender to perform computations on this meta address to initiate stealth addresses belonging to the recipient. Senders can send any assets they want to this address, but recipients have full control. In addition to forwarding, the sender publishes additional cryptographic data on the chain that confirms that the stealth address belongs to the recipient.
Buterin argued that stealth addresses offer the same privacy properties as users generating new addresses for each transaction.
Stealth Address Vs.tornado cache
Several methods have been employed in recent years to obfuscate transaction details. This includes Tornado Cash, which was recently sanctioned by OFAC. Buterin, for example, says that the proposed concept of stealth his address offers a different kind of privacy than the popular Ethereum-based coin his mixer. he explained,
“Tornado Cash can hide transfers of mainstream fungible assets such as ETH and major ERC20s (most easily useful for privately sending to yourself), but obscure ERC20 transfers Adding privacy to NFT transfers is very weak, and privacy cannot be added to NFT transfers at all.”
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