Zether's new privacy mechanism is set to revolutionize Ethereum by hiding transaction details.

Recently, there's been a surge of interest surrounding Zether (PDF) , a privacy protocol designed specifically for account-based cryptocurrencies that utilize smart contracts, such as Ether , ERC20 tokens, and Stellar lumens .

By encrypting transaction values, this protocol can transform top cryptocurrencies, which typically don't focus on privacy, into more private entities. privacy coins.

Zether Privacy Protocol

Initially proposed in a smart contract system that has been updated for 2019, Zether has gained support from notable figures. Shashank Agrawal and Mahdi Zamani, affiliated with Visa Research, have contributed, alongside Dr. Dan Boneh and Benedikt Bünz, cryptographers from Stanford University with substantial expertise. 2018 paper The creators presented Zether as a smart contract capable of executing on its own or in conjunction with others, allowing the exchange of private token amounts, referred to as ZTH. published seminal work on the Bulletproofs privacy protocol.

When using Ethereum, ether can be converted into Zether (ZTH) through a smart contract known as the ZSC, which offers five public functions.

Unlock – Release ZTH from a smart contract position 3/

Fund – create zth by depositing eth
Burn – get eth back
Transfer – transfer zth
Lock- lock zth to a smart contract
Users interact with the ZSC contract by providing a matching token, in return receiving ZTH, whose value remains hidden. To reclaim their original investment, they have the option to burn their ZTH. pic.twitter.com/SXyeMAe2AW

— Jordan Clifford (@jcliff42) February 25, 2019

The Zether platform is underpinned by the innovative Σ-Bullets or Sigma Bullets, advanced Bulletproofs that verify the accuracy of encrypted transactions. This system paves the way for private interactions across payment gateways, auction platforms, voting systems, etc., in smart contract environments.

Despite its remarkable features, Zether isn't the sole zero-knowledge proof technology with the potential to elevate Ethereum's privacy features.

secured $2.1 million USD in an effort to scale zero-knowledge transactions. Already deployed on Ethereum's mainnet, this protocol, much like Zether, uses encryption and range proofs to obscure ether transaction details. The main distinction is AZTEC relies on a trusted setup, whereas Zether's ZSC smart contract can operate without trust.

Last fall, backers of the AZTEC protocol Around the same time, Ernst & Young (EY), one of the 'Big Four' auditing firms, debuted

its proprietary zero-knowledge proof system for Ethereum, named EY Ops Chain Public Edition. announced In their statement, EY emphasized that their technology would permit firms to securely issue and exchange product and service tokens publicly while ensuring private transaction records access.

Focusing on broader privacy initiatives, Ethereum launched a new tumbler service in 2018.

Other Privacy Developments

This decentralized mixer uses Ethereum smart contracts intertwined with ring signatures and stealth addresses, akin to Monero, to enable discreet transactions. Möbius Ethereum co-founder Vitalik Buterin acknowledged last year that while blockchain privacy has advanced, significant work remains.

Buterin stated, 'At present, blockchain usage preserving privacy is still a challenge.'

He added, 'Efforts like Zcash show promise, and there's active research on Ethereum. However, achieving full privacy requires further strides.'

and Zcash have indeed made notable advancements. In October 2018, Monero activated Bulletproofs, enhancing transaction privacy and reducing size. Zcash adopted the Sapling upgrade, introducing shielded addresses and streamlining transaction processes.

Yet top privacy coins Monero Continuing advancements in privacy for Ethereum and other smart contract platforms could strengthen their positions in the cryptoeconomy. Combining improved privacy with enhanced computational features could make these projects more appealing compared to strictly privacy-focused competitors.

William M. Peaster, a seasoned writer and editor, has carved out a niche in the Ethereum, Dai, and Bitcoin sectors of the cryptoeconomy. His contributions can be found in Blockonomi, Binance Academy, and Bitsonline, among others. He takes interest in smart contracts, DAOs, dApps, and the Lightning Network, with ongoing studies in Solidity. Reach him on Telegram at @wmpeaster.