• Vitalik Buterin, the co-founder of Ethereum, is proposing a stealth address system as a fix to the privacy problem in the most active smart contracting platform.
• Stealth addresses would be created by the sender or receiver, with the receiver in charge.
• This fix offers a way for asset receivers to keep transactions, financial or otherwise, private and away from the public’s prying eyes.
In the cryptocurrency world, privacy is a major concern for users. Transactions in Ethereum and other public blockchains can be traced, allowing for the identity of the sender and receivers to be exposed. This is why Vitalik Buterin, the co-founder of Ethereum, has proposed a stealth address system as a possible fix.
This system radically differs from other crypto mixers and platforms, such as Tornado Cash, in that the receiver will be in charge. This is crucially important because the asset receiver would desire to keep transactions, financial or otherwise, private and away from the public’s prying eyes.
The stealth address system works by the receiver creating a spending key which is then used to create a “stealth meta-address”. This address is then sent to the sender, who does a small computation and creates a stealth address that belongs to the recipient. The recipient will always be in charge of sending assets to this address, as well as additional cryptographic data which helps to further protect the identity of the sender and receiver.
This fix offers a way for asset receivers to keep their financial transactions private, and away from the public’s view. It is a much-needed solution to the privacy problem that plagues the most active smart contracting platform, and one that could be a game-changer for the cryptocurrency world.