What Is a Stealth Address: Which Cryptocurrency Uses This Address?
Stealth addresses have come into existence as a secure way to keep the identities of the investors away from the online hackers that are lurking for some selfish gains through such bad practices. This term has gained its usage after we saw cryptocurrencies evolving in the digital world. Certain currencies are using this mechanism to enhance security while the investors are transacting with each other in the digital currency. If you want to know more about bitcoin, then you can visit here & like the Click Money App.
A stealth address is that address that is used to hide the identities of the parties involved in a transaction for a cryptocurrency on a blockchain. The procedure which is used in a transaction for securing is done by providing a one-time password to the sender each time he makes a transaction whether the transaction is with the same recipient, hundred times. Through the mechanism of stealth addresses, it ensures privacy to the parties who are transacting with each other. Although due to some bad practices such as money laundering and any other illegal activity it has faced scrutiny from certain authorities. Once information relating to the investor is linked through a key, that key empowers you to trace the transactions between the parties. These transactions are also called “Pseudonymous transactions”. For its concerns regarding online hacking and stealing the crypto coins taking place in the digital area, it has gained wide popularity.
KNOWING A LITTLE MORE ABOUT STEALTH ADDRESS
Any transaction that has taken place on a network, is recorded on a blockchain which is also known as a public ledger. The participants that are making a transaction, their details that happened today or on any transacting day is visible to the parties. However, the identity of the parties is ascertained through the keys that have been provided to the parties to the transaction. There is a public address that belongs to the receiving party, which is needed while a transaction is taking place to ensure security. The transactions are called pseudonymous because there is an address that belongs to a party but that is only for transaction purposes and the personal identity of the party is not available to any person on this earth. This feature is provided to keep the identity of the party foolproof and helps to prevent online evils like money laundering etc. Stealth addresses have come into play as a consequence of the blockchain failing to provide 100% security in terms of the identity of the parties.
The most famous cryptocurrencies use blockchain technology or the public distributed ledger for example Bitcoin and Ethereum. This feature has questioned the viability of this technology to keep the anonymity of the participants to a transaction. This is when the concept of stealth address was proposed in 2014 by Peter Todd. The specialty of this feature is that it uses one-time passwords and also provides many private and public keys that are different from transaction to transaction. This address by requiring the sender to use the one-time random password each time the transaction has made this technology more trustworthy for the online transaction. Further, if there are many transactions with the same receiver even then because of the OTP feature it is way too difficult to track.
MONERO is specifically a cryptocurrency that was designed with this feature in it keeping in mind to protect the identity of the party.
Therefore, I hope the article that I have written above would give you the required information relating to stealth addresses and how they help more in protecting the identity of the participants.
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