With all respect to Ethereum fans, its smart contracts practical use was a challenge till now for the number of reasons. Nonetheless, the group of industry experts from Visa Research and Stanford University took a foray to overcome the major obstacles for mainstream adoption and created a new mechanism called ‘Zether’ which supports confidential ether transactions for smart-contract platforms.
Hence, the biggest drawback thus far for Ethereum has been the lack of confidentiality, the solution was lying in the creation of confidential layer – Zether.
Thus far, the biggest roadblock to spreading adoption of distributed Ethereum applications was the lack of ‘confidentiality’, which is so highly treasured by users. The available solutions appeared to be unreasonably expensive for regular daily contracts.
According to the white paper of an innovative project,
“Zether is a fully-decentralized, confidential payment mechanism that is compatible with Ethereum and other smart contract platforms.”
The new smart-contract option based on Zether solution can be executed as a standalone service or to be incorporated in other smart contracts platforms. The mechanism locks balances in accounts, deploys encryption and enables safe transactional processes such as deposit, withdrawal, and transfer.
Smart Tech-privacy for Ethereum
At the heart of the new confidentiality-mechanism is an option to “lock funds in a smart contract”, stemming from confidentiality features first introduced by Monero (XMR).
The researchers state that ” they designed a new smart contract that keeps the account balances encrypted and exposes methods to deposit, transfer and withdraw funds to/from accounts through cryptographic proof.”
The authors of the new technology for Ethereum have developed extra protective layers for Zether that enable it to resist replay attacks and other malicious acts.
Besides, developers have attempted “to enable interoperability with arbitrary smart contracts”, including several popular applications like auctions, payment channels, voting, etc. and make them confidential, the paper claims.