Ethereum’s co-founder, Vitalik Buterin, has ideas to solve Ethereum’s last major problem. Can you guess what this challenge is? No? Well, he says it is ‘privacy.’Â Vitalik pointed out that all information that goes on the public blockchain is not protected and is available to everyone. Therefore, there is a need for a privacy solution to protect user information.
Vitalik’s idea to solve the privacy problem
Vitalik has introduced a new term called “Stealth addresses.” It will have the capability to make peer-to-peer transactions anonymous. User information when doing NFT transfers or using Ethereum Name Service will also be protected. The idea here is similar to the concept Bitcoin lightning network. Stealth addresses will allow two parties to conduct transactions with total anonymity.
In this process, the receiver of the assets will have to generate a “spending key,” which will be used to create a stealth meta-address. Senders can then use this address to register on the ENS and then pass it to the sender. The sender will then do a computation to generate a “stealth address,” which will be used by him to send assets.
The sender can create a temporary key to ensure that the address belongs to the intended receiver. So, for every new transaction, a new address will be generated, which will protect user privacy. Buterin stated that to prevent the connection between the stealth address and the user’s meta-address from being publicly observed, a “Diffie-Hellman key exchange” and a “key blinding technique” would need to be created.
The roadblocks
If the solution is this simple, why hasn’t it been implemented yet? Well, this is an idea that has been working on since 2014. However, there are still not completely feasible solutions yet. In fact, Vitalik says that if implemented, there would be more challenges like high gas fees, which could be in the hundreds of thousands for just one transfer.
However, for now, a basic privacy feature using this idea can be implemented which can solve the problem at least. Those who need it can use the feature. And with time, all other challenges can be addressed.
What are your thoughts as Vitalik gives ideas to solve Ethereum’s last major problem? And does any other major challenge regarding Ethereum come to your mind? Let us know in the comments below. And, if you found our content informative, share it with your family and friends.
Also Read: Ethereum validator network is very dense in Germany.
