• Ethereum’s co-founder Vitalik Buterin has proposed a new solution to enhance privacy on the Ethereum blockchain – stealth addresses.
• Stealth addresses enable two parties to exchange funds without revealing their identity on the blockchain.
• Stealth addresses work by taking a sender’s payment and redirecting the funds to an address only the recipient knows, thus preventing anyone else from seeing the transaction or the money moving.
Ethereum is a popular asset and blockchain, but many people think privacy is a concern. In order to address this, the co-founder Vitalik Buterin has introduced a new solution to enhance privacy on the Ethereum blockchain – stealth addresses.
Stealth addresses enable two parties to exchange funds without revealing their identity on the blockchain. When a sender initiates a transaction, the stealth address takes their payment and redirects the funds to an address only the recipient knows. This way, it prevents anyone else from seeing the transaction or the money moving. This is like sending money without disclosing who you’re sending it to! It is like a digital envelope where only the recipient can open it and see the funds, always.
In addition to peer-to-peer transactions, stealth addresses can also be used to anonymize non-fungible token (NFT) transfers, and Ethereum Name Service (ENS) registrations. With stealth addresses, all the sensitive data associated with these transactions stays private.
Buterin acknowledges that all information put onto a public blockchain is public by default, but with stealth addresses, users are able to gain greater privacy. He believes this technology could help Ethereum become even more popular, as it could provide users with more privacy and security.
The concept of stealth addresses has been met with a lot of enthusiasm and it will be interesting to see how it is implemented. If successful, this could be a major step forward in terms of privacy for Ethereum and for blockchain technology as a whole.