Privacy has become a buzzword in the industry of cryptocurrency and ethereum developers are beginning to recognize its importance.
Vitalik Buterin on Ethereum Privacy Features
Ethereum has been frequently headlines in 2019 over its slow transition to ETH 2.0. The Constantinople upgrade represents a first of its kind: a non-hard fork, massive overhaul that will shift ethereum’s algorithm from proof-of-work (PoW) to proof-of-stake (PoS).
Security features have likewise become a focal point in the transition.
In May, Ethereum co-founder Vitalik Buterin published a piece on HackMD claiming the network was in need of a step towards “more privacy.” Buterin proposed a feature for allowing ether users to obscure their activity on the blockchain in one-off transactions, calling his design a “minimal mixer” that relied upon “anonymity sets.”
Buterin further explained his idea in an email with CoinDesk,
“Anonymity set is cryptography speak for ‘set of users that this thing could have come from.’ For example if I sent you 1 ETH and you can’t tell who exactly it was from but you can tell that it came from (myself, Alice, Bob or Charlie), then the anonymity set has size 4. The bigger the anonymity set the more privacy you have.”