Vitalik Buterin, the co-founder of Ethereum, has backed a proposal to create a new extension for NFTs. Only new owners of pre-owned NFTs can see who previously held them, as they would not be visible to everyone via blockchain data.
Vitalik Buterin proposal.
Anton Wahrstätter, also known as “Nerolation,” an Ethereum researcher, has proposed adding an “ERC721 extension for zk-SNARKs.” For increased anonymity, Nerolation proposes adding ZK-SNARK compatible ERC721 tokens to the Merkle tree on-chain. Which would obscure public blockchain transactions by generating one-time addresses and utilizing zero-knowledge proofs.
Wahrstätter describes the proposal as “the exact implementation of what Vitalik described” when he discussed the need for privacy in his recently introduced SoulBound Tokens (SBTs).
Although Buterin supported the concept of anonymous NFT transactions, he was opposed to the entire proposal. Implementing Wahrstätter’s proposal, according to Buterin, would require users to pay “5-50 times” the regular fees for NFT transactions, making it impractical.
The Ethereum co-founder proposed that smart contract wallets include codes allowing senders to conceal their addresses from third parties. Buterin’s proposal would use “regular stealth addresses” rather than complex Merkle trees.