Namaste 🙏 to all of you. Its my first post in this community. Hope all eill enjoy and give your support .

Today I come with anothet important topic about Stealth Addresses in crypto space.

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I hope all of you like my detailed post regarding stealth addresses and share your views on it through the comment section.

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What it Means by Stealth Addresses

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At present, decentralization is trending in the crypto space. After seeing FTX collapse and Binance facing issues regarding money laundering, users are slowly leaving centralised exchanges to hold or trade cryptoassets as per their needs.

The next alternative is decentralised wallets and platforms. Because those keys are handled by the users themselves, they will assess their accounts without any restrictions. With help from those decentralised wallets, they will connect any decentralised applications and do their investment or hold their assets themselves.

In the decentralised crypto space, Ethereum Network plays a major role. That's why, lot of hackers start tracking wallets using Ethereum scanner. They mainly focus on who is holding the major money and where they are investing it, and from whom they are sending funds like those they are collecting.

Due to this users not getting that's much privacy, a high chances to get hack our accounts.

To resolve this issue, developers introduce Stealth addresses. Means in each transaction instead of main wallet address it generate dumy address, th this address it transfer founds to target address. From this sender address not explore on block chain, so hackers not possible to track original address of sender. So we get good security due to this feature.

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Benefits of Using Stealth Addresses

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From this feature, we get a lot of benefits. They are

• Due to this, we get more privacy and security on our Erhereum transactions.

• Here dummy address generate automatically so users no need to worry on it.

• Each of these stealth addresses is cryptographically tied to the receiver's public address. So only the receiver can claim or view it; any other person is not able to track it.

Like those benefits we get, there are still a lot of challenges we need to face.

In the decentralised crypto space, we can track any transaction using scanners. By checking here, we may identify the date, time, how much they are sending, and whom they are sending very easily. So it's not possible to hide completely, which is why we again need to face privacy issues.

One more reason is that blockchain uses a distribution ledger for recording transactions. So it's an open source; anyone can search for and extract the data they need. But it is not possible to identify the owner of this account physically. So in our personal lives, we don't get any issues regarding it, but hackers have chances to compromise our wallets.

In my suggestion, don't hold huge money on decentralised wallets; it's better to use hardware wallets. because some of my friends' wallets got hacked recently after an arbitram airdrop. So be safe your founds securely .

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How Stealth Addresses Work

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I tried to explain with an example. For example, Suresh wants to send some Ethereum to Mr. Fox. So here, the sender is Suresh and the receiver is Mr. Fox.

So here, Suresh or Mr. Fox can generate stealth addresses, but access rights only belong to Mr. Fox. Because he is the receiver, that's why his public address is cryptographically, tied with stealth addresses.

For this transaction, first, Mr. Fox needs to generate a secret spending key, which is used to create a stealth meta-address. Then, he needs to share this meta-address with the sender, Suresh. On using this information, suresh generates stealth addresses that belong to Mr. Fox.

Then, after using that address, Suresh sent any ERC-20 coins to Mr. Fox as per their dealing. Along with Suresh, he can add extra data for identifying the coins that he is sending. Those details are only visible to Mr. Fox. So by using that information, by scanning assets, he puts those into his wallet.

But it looks very complex to ordinary users, but those dealing with huge amounts of money get good security and privacy through this feature.

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Challenges and Limitations with Stealth Addresses

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This mechanism looks very simple to implement and develop. But coming to real use cases we need to face lot of issues. They are

• Gas fee: In the Stealth Addresses mechanism, for transaction needs, it generates a new wallet; for executing transactions, we need gas fee. Without it, we cannot execute.

So for this need again, we need to send the gas fee needed amount with our original address.

By using this loophole, hackers can easily track our wallet using transaction hashing. It's a major issue in this macanisum.

Like those major issues needs to face in this Stealth Addresses mechanism.

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Besides this, we can use the zero-knowledge proof. It gives good security and privacy with comparing the present machsnisum. But it's in the starting stage. It took huge time and money. Let's wait for a better future in the coming days.

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Conclusion

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Stealth Addresses is a good concept, but it's not easy to use for normal users. It needs huge gas fees to execute transactions. At the same time, hackers easily teach our original address in this mechanism also. That's why it doesn't give us that much privacy on our wallet. Better to go with Zero- Knowledge Proof.

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Thank You So Much For Reading My Article!