Vitalik Buterin (Ethereum founder) just posted a blog over the weekend, attaching it to the proposal “Stealth Address” to enhance privacy protection for blockchain users.
In his post, Vitalik emphasized that protecting privacy is one of the challenges for the ecosystem, and “it is extremely urgent to improve this issue”.
An incomplete guide to stealth addresses:https://t.co/21Q18BrD30
— vitalik.eth (@VitalikButerin) January 20, 2023
Stealth Address (the concept mentioned by the founder of Ethereum) will be generated from the user’s wallet and public key address to support transactions with higher security of personal information. To access these private transactions, users will have to use a special type of key called a “spending key”. Basically, with each transaction, the user will create a temporary address called “Stealth Address” from which to protect his personal information on the blockchain.
The process is described by Vitalik with the following example:
- Bob will generate an address – Stealth Address as mentioned above. You can think of this as a box.
- Bob will send this box to Alice (either directly or through ENS registration).
- Alice’s bridgehead performs several computations for authentication.
- Alice will deposit her assets into this Stealth Address box.
- Finally, because he is the one who created the box and holds the key, Bob is able to decrypt and get the property out of this box.
This paradigm isn’t too new, as it’s the way messaging apps in the old Internet world worked. However, how to optimize and maintain transparency in the Web3 space is another matter.
Security of personal information is one of the biggest concerns of the Ethereum ecosystem, especially in the context that all transaction information is publicly available on the blockchain. However, many current solutions (such as Tornado Cash) according to Vitalik have many limitations because they only support popular token standards such as ERC-20 or pure ETH.
Stealth Address will bring a new mechanism to enhance personal information protection for NFT and ENS domains – Ethereum Name Service.
However, it must be acknowledged that these security solutions still face many question marks, especially in terms of legality. In August 2022, a Tornado Cash programmer was arrested by the authorities for the purpose of investigating money laundering activities through this protocol.
As can be seen, Vitalik Buterin’s recent blog posts focus more on application improvements. Before that, he had discussions related to Soulbound Token, an identifier that cannot be traded and can be applied to solve governance voting problems.
>> See more: Vitalik Buterin discusses the future of the crypto market
In addition, in a post related to Ethereum’s interesting issues, Vitalik also highly mentions the practical application of cryptocurrencies.