Ethereum co-founder Vitalik Buterin has unveiled a "maximally simple" Layer 1 (L1) privacy roadmap aimed at enhancing user privacy on the Ethereum blockchain. Recognizing that all transactions on public blockchains are inherently transparent, Buterin emphasizes the need for privacy solutions that are straightforward and efficient.
Central to his proposal is the implementation of "stealth addresses," a method allowing users to receive funds without publicly linking their identity. In this system, the recipient generates a "spending key" to create a stealth meta-address, which the sender uses to compute a unique stealth address for the transaction. This approach ensures that only the recipient can access the funds, thereby preserving privacy.
To further bolster privacy, Buterin suggests integrating zero-knowledge proofs, specifically ZK-SNARKs, which enable the verification of transactions without revealing underlying data. However, he notes that the current implementation of ZK-SNARKs may lead to increased gas fees, posing a challenge for widespread adoption.
In addition to stealth addresses, Buterin has co-authored a research paper introducing "Privacy Pools," a protocol designed to balance user anonymity with regulatory compliance. This system allows users to prove that their funds are not associated with illicit activities, addressing concerns raised by regulators about privacy tools being used for money laundering.
Buterin's roadmap also highlights the importance of integrating privacy features directly into Ethereum wallets. He advocates for wallets that support private balances and seamless anonymous transfers, reducing reliance on specialized privacy tools and making private transactions more accessible to everyday users.
By focusing on simplicity and practicality, Buterin's proposals aim to make privacy a standard feature of the Ethereum ecosystem, ensuring that users can transact securely and privately without compromising on usability or compliance.
