What does Stealth Address mean in Cryptocurrency?

We may have heard the name of Stealth Address many times in Cryptocurrency. This is a very common word. Stealth address refers to a wallet address in cryptocurrency. Such addresses are commonly used to create more anonymity in cryptocurrency transactions. Simply put, Stealth addresses are a technique for obscuring public blockchain transactions by generating one-time addresses for each transaction.

Since cryptocurrency wallet addresses or everything else is publicly available. And when all these factors are linked to the wallet address then the transactions in such wallets can be traced. Transactions can be traced to you when our name as well as other information is publicly associated with any of our wallets. Such a stealth address works like your wallet address which we can basically say as a copy or a proxy to such wallets. Acts as an additional layer of anonymity.

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Nowadays blockchain technology is included with it which is playing a very important role in the technology field. A blockchain network is a type of network that is a distributed ledger that addresses the recipient and sender. Blockchain is a technological network that resembles a shared database containing transaction volumes. This information can be viewed by the participants of all the transactions that are completed in this technological network or blockchain or all the wallet related activities that are done in this network.

And for such activities an active observer can trace the transaction. Because it contains all the information and can identify the parties involved. We know that an actual cryptocurrency transaction requires two addresses when a transaction is completed. One from each party to complete the transactions. We know that when our transactions are completed, we store them but do not actually disclose any personal information. Because the network doesn't record it. This lack of data is the key reason behind the anonymity that should be inherent in cryptocurrencies

The identity protection features of blockchain technology are not completely anonymous. Although personal information associated with transactions remains confidential, transactions can be tracked to the addresses involved in the transaction. If address owner information is discovered when a transaction is completed. Then personal information can be tracked from that address. Then knowing such information no longer renders the address anonymous.

In some cases, when you publicly raise money and accept transactions, there are times when that information needs to be disclosed to the public. And in this case a stealth address offers this advantage. Cryptocurrency funds can be sent using such addresses. This will add your wallet address to your name. Such transactions will generally allow public information to track your transactions They can track what you use or where you send the transactions they collect.

Stealth addresses are a deceptive technique. Using such addresses provides an extra layer of security for cryptocurrency users if you create a stealth address for your charity-raising needs. Then you can enjoy all these benefits and even by creating these addresses funds can be sent to that address without revealing your personal wallet address. To know more details about this you can read this article.

Posted Using InLeo Alpha