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Fluidkey Launches to Tackle the Transaction Privacy Issues on EVM Chains

source-logo  news.bitcoin.com 24 February 2024 09:30, UTC

Fluidkey has announced it has opened its Optimism-based alpha to more users, allowing them to test their private solutions. Fluidkey seeks to solve the transaction privacy problem in EVM chains by leveraging ENS and stealth addresses, allowing users to use a new self-custodial asset for each payment, and segregating these movements to avoid linkability.

Fluidkey Opens Alpha to Tackle Payment Traceability in EVM Networks

Fluidkey, a privacy-oriented project, has announced that it has opened the doors for users to be included in its alpha testing operations on top of Optimism. The project seeks to tackle the privacy problem of public addresses in Ethereum Virtual Machine (EVM) chains, where all transactions are associated with just one address.

Fluidkey combines Ethereum Name Service (ENS) domains with stealth addresses to this end, allowing the user to generate a different self-custodial address for each payment made, addressing the privacy and likability issues for EVM chains.

While this can be achieved without using Fluidkey by managing a plethora of wallets manually, Fluidkey makes it transparent to the user, grouping all payments under the same ENS domain to be viewable under a centralized dashboard. The solution is designed to be integrated into every solution that allows for ENS domain integration, facilitating its implementation across several projects without rewriting software for this task.

While Fluidkey breaks payment linkability, preventing an external user from connecting a payment with a receiving address, it does enable transaction traceability. This eases the work for users to disclose the origin funds to trusted third parties like tax authorities or auditors, differentiating from mixers and other similar solutions.

The tool is currently only featured in Optimism, but it is projected to be implemented on Ethereum Mainnet, Arbitrum, Polygon, Base, and Gnosis Chain.

The project has been in the works since 2023 when it was one of the winners of the Ethrome Web3 hackathon.

What do you think about Fluidkey and its approach to tackling the privacy issues presented in EVN public chains? Tell us in the comments section below.