Vitalik Buterin and Ethereum developers discuss how to create private NFTs

Private non-fungible tokens (NFTs) is the new proposal that Ethereum co-creator Vitalik Buterin and network developers have on the table. It is a proposal that is at an early stage and would hide the receiving address of an NFT.

The proposal The original was published by Ethereum developer Anton Wahrstätter (Nerolation). He proposes to use zk-SNARK technology, a privacy system for cryptocurrency networks, in order to increase the privacy of NFT exchanges.

Privacy, Wahrstätter explains, applies to the entire process that exists when creating, sending or burning an NFT. Each of these processes would hide the real address of the holder of the NFT.

It is worth keeping in mind that, in Ethereum, the address-private key ratio is 1:1. This means that for each address there is only one private key. Therefore, receiving an NFT at a new address requires creating a new private key.

To avoid this, Wahrstätter proposes the use of a “hidden” address which is derived from a hash of the user’s original public address using zk-SNARK technology.

For Vitalik Buterin, the process could be simpler

Buterin is interested in the goal of this proposal, but believes that it could be done without the use of zk-SNARK. According to the co-creator of Ethereum, the network protocol itself could be used to achieve this.

The Russian-Canadian developer believes that one of the biggest challenges this proposal will have to go through is how to deal with commission costs. Due to the hidden address system that it proposes, its use would become very onerous.

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