Ethereum Privacy New Proposal cWETH Draft Released

ChainCatcher news, a proposal titled "Confidential Wrapped Ethereum Privacy" has been published on the Ethereum research forum. This proposal introduces the concept of confidential wrapped Ethereum (cWETH), aiming to achieve privacy protection for ETH transactions at the application layer. cWETH combines the elliptical curve Twisted ElGamal commitment scheme and the Diffie-Hellman protocol, utilizing zk-SNARKs to verify transaction legitimacy, allowing users to make peer-to-peer payments without revealing their balances and transfer amounts.

Compared to existing solutions, cWETH allows access to encrypted balances without solving the discrete logarithm problem, improving efficiency. This proposal is expected to evolve into a complete confidential token standard (EIP).