Ethereum co-founder Vitalik Buterin has proposed a new way to enhance privacy and security protections for Ethereum users: stealth addresses.
The concept of a stealth address is relatively simple and mirrors the way anonymous transactions are conducted with Bitcoin. To send funds to an Ethereum address, an individual would generate a single-use address to which funds can be sent. This address can only be used once and, once the transaction is complete, all data regarding the sender and receiver is encrypted and cannot be discovered by a third party.
Buterin’s proposal includes several steps to make stealth addresses more functional. First, he outlined a new type of transaction (called a “blinded transaction”) that would allow users to send funds to a stealth address while protecting their addresses from public view. Second, he proposed allowing users to submit encrypted messages so that they can communicate with one another without making their messages public.
Finally, Buterin also proposed that Ethereum users could choose to generate « stealth contracts », which would essentially hide the nature of the contract from anyone else. This would allow users to trust that their privacy is protected even when dealing with a third party.
Buterin’s proposal is just one of many ways Ethereum is looking to increase privacy and security for users. While it remains to be seen if the proposal passes, it is clear that Ethereum is looking to become a more secure and private platform for its users. With this proposal, Ethereum users will be able to ensure that their transactions are secure and private, giving them more peace of mind when engaging in cryptocurrency transactions.