Vitalik Buterin relies on Stealth Address to keep blockchain transactions privately

Vitalik Buterin relies on Stealth Address to keep blockchain transactions privately

data protection tools have always been announced as the key to financial freedom in the crypto industry. In the Ethereum ecosystem, the discussions about the topic mainly revolved around the transfer of ETH and mainstream erc20 token while maintaining privacy.

To improve data protection in the network, his co-founder Vitalik Buterin has proposed a stealth address system.

"Last remaining challenge for Ethereum"

The concept of stealth addresses with elliptical curve cryptography was first introduced in connection with Bitcoin by BTC Core developer Peter Todd in 2014 to disguise transaction details. In the latest blog post, but the Laberin admitted that data protection is "one of the greatest remaining challenges in the Ethereum ecosystem", and at the same time emphasized the need for a data protection solution, since "everything that goes into a public blockchain is public.

stealth addresses, on the other hand, can help here. Buterin noticed that such an existing mechanism will enable the Ethereum pocket to generate stealth addresses, to receive funds privately and with a special code called "Spending Key" to access it.

The proposed stealth addresses can be generated by both parties, but only checked by one of them. The user who receives the assets generates the stealth address and keeps an expenditure key secret, which is then used to generate a stealth meta address that can be passed on to the sender.

This enables the transmitter to make a calculation at this meta address in order to initiate a stealth address that belongs to the recipient. The sender can then send all assets to this address, while the recipient has full control. Together with the transmission, the sender publishes some additional cryptographic data in the chain that confirm that the stealth address belongs to the recipient.

Buterin claimed that stealth addresses offer the same data protection properties as a user who generates a new address for each transaction.

Stealth address vs. Tornado-Cash

"Tornado cash can hide transfers from mainstream-fungable assets such as ETH or large ERC20S (although it is the easiest for private sending in itself), but it is very weak to give transfers obscure ERC20S privacy, and NFT transfers cannot add privacy at all."

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