On 20th February, the Visa Research and the researchers of the Stanford University published a paper in the Stanford University Applied Cryptography Group website where they discussed their recent development on the privacy mechanism specially designed for the ETH or the Ethereum Smart Contracts.
The paper states about the creation of “Zether”, which is “a fully-decentralized, confidential payment mechanism” and this particular system, consist of the smart contract platform along with the Ethereum. The Ethereum contracts developed by the developer is controlled both by the smart contracts and the individuals and maintains encrypted account balances and at the same time, is capable of making deposits, withdrawal as well as the transfer of the money with the help of the cryptographic proof.
According to the researchers, the transactions made through Zether will remain confidential, however, it will be little costly too, as a transaction through Zether will cost around 0.014 ETH, which is equivalent to around $1.15 per press time. If you want to enhance the confidentiality of your transaction then you can lock your money in an account and convert them into smart contracts. Different experts are of the opinion that the kind of anonymity that you get through Zether is similar to the anonymity of XMR or Monero. They further explained the whole thing by stating –
“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.”
There’s a mixed feeling both from the part of the government and the public with regards to the privacy coins developed by the researchers of Stanford University, as it has increased the anonymity of transaction. In this respect, the declaration made by Charlie Lee, the creator of the Litecoin, also became very important. Lee, last month declared that they would be making the cryptocurrency more private along with making it more fungible. He also added that “sometime in 2019”, they will add a soft fork to the Litecoin in order to increase the confidentiality of the transactions that are made.
In the year 2018, few of the Japanese regulators from the FSA or the Financial Services Authority came with the suggestion of barring the exchange of cryptocurrency with respect to the trade of the Monero and the altcoins DASH, as they are being regarded as the anonymity oriented coins.
According to one of the FSA member who has refused to reveal the name, “It should be seriously discussed as to whether any registered cryptocurrency exchange should be allowed to use such currencies.” So, the future of the exchange of the cryptocurrency is still under the radar in the midst the development that has been made by the Stanford University researcher is truly commendable.