Ethereum co-founder Vitalik Buterin made a proposal to ensure privacy on the Ethereum Blockchain network. Buterin proposed a cryptographic structure known as a “secret address system” to improve privacy. The secret address system is known as a mechanism for an Ethereum network user to privately transfer funds and provide a special code, called a spending key, to access funds, thus allowing public addresses to be used in a hidden manner.
Vitalik Buterin said that private addresses will basically have the same level of privacy that those who use a new wallet for every transaction are trying to establish. Thus, with this move, every transaction on the Ethereum network will be seen as unique and the confidentiality of the Ethereum network will be increased with the anonymous addresses created. Using this mechanism means its users can hide their transaction history. Thus, it becomes difficult for any person or institution to monitor the transactions and identify the parties of the fund transfer.
Buterin reintroduced the use of ZK-SNARKs, known as zero-knowledge proofs, to ensure that his proposed system offers efficient privacy and makes it more difficult to link secret addresses together.
On the other hand, Vitalik Buterin came to the fore with the transfer of more than $ 11 million worth of Ethereum between his wallets last week. Ethereum co-founder’s ETH transfers are closely followed. This ETH development on Buterin caused an increase in volatility in the Ethereum market.