How Do Stealth Addresses Work?

How Do Stealth Addresses Work?

Stealth addresses are a privacy feature used in Monero (XMR) to ensure that the recipient’s address remains hidden from the public eye. This protects the recipient’s privacy and prevents third parties from tracking the recipient’s transaction history.

How Do Stealth Addresses Work?

Stealth addresses work by generating a one-time public address for each transaction, which is different from the recipient’s regular public address. The sender uses this one-time public address to send the transaction, which is then recorded on the blockchain. The recipient is the only one who can access the funds sent to this one-time public address, as they are the only one who holds the private key that corresponds to it.

Here’s a step-by-step explanation of how stealth addresses work:

  1. The recipient generates a public address and a private key, which are used to receive transactions. This public address is publicly available and can be seen by anyone on the network.
  2. The sender wants to send a transaction to the recipient and uses the recipient’s public address to initiate the transaction.
  3. Before the transaction is processed, the recipient’s wallet generates a unique one-time public address for this specific transaction.
  4. The sender sends the transaction to the one-time public address, which is recorded on the blockchain.
  5. The recipient’s wallet uses the private key corresponding to the one-time public address to access the funds.
  6. The recipient’s transaction history remains hidden, as the one-time public address is not linked to their regular public address and cannot be used to trace the transaction history.
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Benefits of Stealth Addresses

Stealth addresses add an extra layer of privacy to Monero transactions, as they prevent third parties from tracing the recipient’s transaction history. This makes it difficult for outside parties to determine the amount, destination, or origin of a transaction, ensuring that the recipient’s privacy is protected.

Worth to know

Here are some additional benefits of stealth addresses:

  • They make it difficult for blockchain analytics companies to track Monero transactions.
  • They can be used to send anonymous donations or payments.
  • They can be used to protect the privacy of whistle-blowers or activists.

Stealth addresses are a powerful tool for protecting the privacy of Monero users. They are easy to use and can be a valuable tool for anyone who wants to keep their financial transactions private.

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