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Ethereum developer offers anonymous transactions
Vitalik Buterin has proposed a system of «invisible addresses» to increase the confidentiality of transactions on the Ethereum network. In his blog post, the father of Ethereum emphasized that privacy is «one of the biggest remaining challenges in the ecosystem.»
An incomplete guide to stealth addresses: https://t.co/21Q18BrD30
— vitalik. eth (@VitalikButerin) January 20, 2023
In Ethereum, transaction information is available by default. Based on the open data, blockchain companies can identify the owners of the necessary crypto wallets, and law enforcement agencies can detect illegal financial transactions. However, all of this can be a concern for ordinary users who want to maintain their privacy. To achieve privacy in cryptocurrency transactions, virtual asset owners can use mixers like Tornado Cash.
The new system proposed by Buterin is designed to provide greater privacy for users on the Ethereum network, from anonymous financial transactions to sending NFTs. «Every time a subscriber makes a transaction and sends funds to the recipient, the recipient will be able to create a hidden address that will mask the history of cryptocurrency transactions
According to Buterin, the proposed privacy solution may pose problems for wallets with a «social recovery» option. In such accounts, a multi-signature mechanism allows the owner of a lost crypto wallet to regain access with the help of proxies.
«In order to significantly increase the practical privacy of Ethereum users, basic hidden addresses can be implemented fairly quickly right now. However, I believe that it is necessary to move towards a multicast model, as it is more natural,» the developer said.
Earlier, Buterin spoke about a technology that will become more important than blockchain. The developer considers zk-STARK «an extremely promising proof-of-work protocol with zero disclosure.» The protocol can already solve blockchain problems related to scalability and privacy, although its functionality demonstrates a much wider potential for future innovations in the industry.