Privacy Mechanism for Ethereum Smart Contract Developed By Stanford Researchers

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Private Etherium Smart Contract Developed By Stanford

Researchers from Stanford University have established a personal privacy system called Zether, which works with Ethereum and other smart agreement platforms.

Researchers from the Stanford University and Visa Research have developed a personal privacy system for Ethereum (ETH) smart contracts. A paper explaining the system was released on Stanford University’s Applied Cryptography Group site on Feb. 20.

According to the paper, the researchers produced “a fully-decentralized, confidential payment mechanism” called “Zether” that follows both Ethereum and other smart contract platforms. The developers reportedly developed a brand-new smart contract– that can be executed either individually or by other smart contracts– that preserves the account balances encrypted and enables the deposit, transfer and withdrawal of funds through cryptographic proofs.

The author’s claim in the report that transactions on Zether are personal, in which one transaction costs roughly 0.014 ETH or around $1.51 at press time. Enhanced privacy is reportedly made possible by the option to lock funds in an account like a smart contract. The type of privacy ensured by Zether is akin to Monero (XMR), the report says, describing:

“We describe an extension to Zether that can also hide the sender and receiver involved in a transaction among a group of users chosen by the sender. Though the overhead associated with anonymity scales linearly with the size of the group, no trusted set-up is needed and no changes to the underlying smart contract platform are required.”

smart contracts etherium“The Zether contract will never transfer funds without first checking an appropriate burn or transfer proof, even if the request comes from another smart contract whose rules do not permit illegal transfers. This design decision ensures that the security of Zether only depends on itself and not on any outside smart contract. Even a maliciously written or insecure smart contract cannot cause Zether to misbehave,” the report specifies.

Personal privacy coins, which offer users more anonymity, are approached with mixed feelings both from the community and governments. Last month, Litecoin (LTC) developer Charlie Lee declared that he would concentrate on making the significant cryptocurrency more fungible and private. Lee explained that confidential transactions could be contributed to Litecoin through a soft fork and would be executed “at some point in 2019.

“In April 2018, Japanese regulators from the Financial Services Authority (FSA) recommended avoiding cryptocurrency exchanges from trading anonymity-oriented altcoins Dash (DASH) and Monero. “It must be seriously talked about as to whether any registered cryptocurrency exchange should be allowed to use such currencies,” an unnamed member of the FSA group stated.

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