Mobius Could Make Ethereum Anonymous in a Similar Way to Monero
Ethereum transactions like Bitcoin do not offer transaction privacy and any user that wishes to be anonymous would have to use a third-party service. Mobius announced at the privacy enhancing technologies symposium in Barcelona a protocol to bring anonymity to the Ethereum blockchain. Those who buy ether to use on the block may see anonymity features added soon.
The protocol hides the payment information by mismatching the origins and destinations until the link is broken. Mobius can complete this with the use of a smart contract using ring signatures and stealth address in the same way as Monero; preventing the need for a third party. The use of a third party reduces security and trust.
Wallet addresses are not directly linked to a person’s identity. The movement of funds between wallets is completely traceable and there are methods of tracking it increasing the demand for privacy. Those looking for greater privacy for their transactions would have to buy crypto like Monero, Zcash or PIVX.
Privacy focused coins have raised the concerns of authorities who believe they enable crimes such as theft, extortion and money laundering. Japan, a country at the forefront of cryptocurrency innovation, has even pressured its exchanges to delist Monero, Zcash and Dash due to their anonymity. If a privacy protocol was introduced, you would still be able to buy Ethereum from an exchange.
The Ethereum network has more projects with a focus on anonymity, Enigma’s ‘Secret contracts’ are attempting to make a decentralised application for developers to conceal data and Parity’s ‘Secret Store’. With all these developments we could see greater privacy in the future when using the Ethereum network.
Don’t forget you can buy Ethereum from your trusted cryptocurrency broker, BC Bitcoin.