- SUI co-founder Adeniyi Abiodun has announced that the blockchain is about to bring confidential transfers.
- The upgrade would feature hidden transaction amounts for its users.
- Another key feature of this upgrade would be preventing unauthorized minting by design, critical in preventing minting-related attacks.
- SUI integrates with several chains, such as Ethereum, to enhance privacy on its network, but lacks features present in ZCash and Monero.
SUI Announced New Privacy Features
SUI co-founder Adeniyi Abiodun has announced that the blockchain is about to introduce confidential transfers, a feature that will allow obscure transaction amounts for any transaction on Sui.
Another core feature of this upgrade would be that new mints on the blockchain would be restricted to authorized persons, such as token creators, official SUI personnel, and other issuers. As a result, minting-related hacks would stop on the blockchain. We recently saw how a hacker minted $80 million worth of stablecoins, crashing the Resolv Labs protocol.
With new tools emerging like Flash USDT and AI-based penetration tools, smart contracts would have to ensure security at the design level to ensure greater prevention of security incidents.
Why does it matter?
Previously, anyone could check the public details of any transaction, such as the sender and receiver addresses and the amounts transferred, as on other blockchains. However, with the rise of blockchain tracking and analytical tools, user privacy has taken a hit across most chains. For example, here are Kevin Ray Farpella’s wallet details showing the amount of ETH he holds. Kevin is a music producer in California.
The increased usage of AI in crypto analytics has also led to reduced privacy for users, exposing many unsuspecting ones to criminals and undue actions taken by authorities.
Joins Ethereum and Others Improving Privacy for Users
SUI Joins Ethereum in upgrading its privacy. Previously, Ethereum co-founder Vitalik Buterin had announced improved privacy features for the blockchain, such as stealth addresses.
Might Lack ZCash and Monero Grade Privacy
Although Sui offers some user privacy, it still lags behind in shielded transactions, as in ZCash, and in complete privacy, as with Monero. ZCash and Monero are much more advanced in terms of privacy and, therefore, are banned in many countries and exchanges.
Below is a tabular infographic comparing the privacy features of SUI, ZCash, and Monero. Notably, Monero provides the best privacy among all chains.
Disclaimer: BFM Times acts as a source of information for knowledge purposes and does not claim to be a financial advisor. Kindly consult your financial advisor before investing.
