- Ethereum’s founder has proposed a solution to its greatest challenge
- Stealth address might potentially protect users by providing anonymity
- The stealth address approach offers a different level of privacy than Tornado Cash
Founder of Ethereum Vitalik Buterin has proposed a solution to what he regards as Ethereum’s greatest remaining challenge: privacy.
Buterin acknowledged the necessity for a privacy solution because, by default, every data added to a public blockchain is also made public.
Then, he introduced the idea of stealth addresses, which he claimed might potentially protect users by anonymizing peer-to-peer transactions, nonfungible token (NFT) transfers, and Ethereum Name Service (ENS) registrations.
Buterin stated that stealth addresses might provide longer-term usability challenges, such as social recovery concerns. However, he is optimistic that the issues will be adequately addressed in due time.
He stated that these issues are solvable in the long run but that the ecosystem of stealth addresses will rely significantly on zero-knowledge proofs.
In addition, Buterin explained that the suggested stealth address approach offers privacy differently from Tornado Cash.
Tornado Cash can hide transfers of mainstream fungible assets such as ETH or major ERC20s (though it’s most easily useful for privately sending to yourself), but it’s very weak at adding privacy to transfers of obscure ERC20s, and it cannot add privacy to NFT transfers at all.
In other news, the On-chain and technical data suggest that Bitcoin is now at a crossroads where important decisions need to be made. Bitcoin is now trading below a long-term negative resistance level, and the level is currently being retested.
Both Bitcoin supply in profit and Bitcoin: Short-Term Holder SOPR (SMA 7) has grown a lot. This means that short-term investors will make more money and may be able to sell more shares.
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