Nocturne brings private accounts to Ethereum

The first mainnet version of Nocturne has limited functionality, but more features are in the works

article-image

Nocturne and wacomka/Shutterstock modified by Blockworks

share

Nocturne, a protocol that enables private accounts on Ethereum, has launched its first version on mainnet. 

The protocol is designed so that users are able to deposit or receive funds privately on what Vitalik Buterin calls stealth addresses

This means that users can generate a secret spending and viewing key, which can then be used to create multiple meta-addresses that can be used to interact with other accounts.

These addresses are held within Nocturne smart contracts and are intended to be used to trade what the company refers to as ‘hot assets,’ or crypto assets that are not designed to be held. 

According to Nocturne, its smart accounts will be compatible with DeFi protocols that “represent state via output tokens.” This means that it will only be compatible with tokens that are made valuable from a previous input — or tokens where a user must deposit collateral in order to mint the token. 

Such tokens could include Uniswap liquidity tokens, Aave’s aTokens, and Compound’s cTokens. 

There are plans to later extend smart account compatibility to arbitrary protocols with the help of zero-knowledge technology, which can prove ownership of assets without revealing the details of the assets owned themselves, Nocturne notes. 

Luke Tchang, CEO and co-founder of Nocturne, noted in a press release reviewed by Blockworks that the company is moving away from simply being a ‘privacy tool.’

“Privacy should be embedded at the account layer and the v1 launch is the first step in making this possible,” Tchang said. “Our goal is to ensure that everyone, from individual users to large institutions, can transact securely without exposing their financial history to the world.”

Users who wish to access Nocturne v1 can do so through a private vault user interface. The current capabilities of the interface are limited to deposits, transfer of tokens to burner addresses, and private swapping and staking, the company said.

Future versions of the protocol include the migration of a ‘proof-of-innocence’ protocol that can prove transactions are verified without revealing any information about the user’s identity and further usability and functionality of Nocturne wallets by enabling compatibility with arbitrary smart contracts.


Start your day with top crypto insights from David Canellis and Katherine Ross. Subscribe to the Empire newsletter.

The Lightspeed newsletter is all things Solana, in your inbox, every day. Subscribe to daily Solana news from Jack Kubinec and Jeff Albus.

Tags

Upcoming Events

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Screenshot 2024-05-23 091855.png

Research

Bitcoin L2s aim to boost scalability while preserving decentralization and security, unlocking a better user experience, and new avenues for Bitcoin-powered innovations. However, no existing Bitcoin L2 leverages the full security of Bitcoin.

article-image

Three Democrats joined Republicans Thursday in supporting a bill that would block the Federal Reserve from issuing a retail CBDC

article-image

Plus, Zeta Markets has released a litepaper for the “Zeta X” layer-2 it’s hoping to send to mainnet in early 2025

article-image

From CME Group’s launch of ether futures to congressmen urging the SEC to approve spot funds, a lot has led up the agency’s decision

article-image

Sponsored

As part of the #Breakout2024 plans, Radix has introduced Token Trek

article-image

House members ask Gensler to keep a “consistent and equitable approach” with ether ETF proposals after the agency approved spot bitcoin ETFs in January

article-image

Using old-world instruments to address crypto user experience challenges goes against what this industry set out to do