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Source: Maxlion
Original title: Will the "NFT Privacy Proposal" posted by V God make it easier for hackers to sell stolen goods?
According to the 2022 Web3 Security Research Report jointly released by Chengdu Lianan and Footprint, 79 security incidents occurred in the first half of 2022, and losses caused by various attacks reached US$1.913 billion. The summer of 2022 is also nicknamed "Hacker Summer" ".
homogeneous tokens often enter privacy protocols such as coin mixers after being stolen, while NFTs are relatively difficult to sell after being stolen. First, because each stolen NFT has a "name", the victims often Mainstream NFT trading platforms will be required to freeze NFTs or ban related transactions, and when hackers change hands, anyone can view the transaction information of stolen NFTs in real time through on-chain information; in addition, there are currently no dedicated privacy tools for NFTs on the market. ,lead to NFT is difficult to sell.
On August 4, a proposal called "ERC721 Extension for zk-SNARKs" appeared on the Ethereum technology forum ethresear.ch, and related discussions continued until August 20. This proposal may promote the privacy of Ethereum NFTs. On the one hand, it may promote the development of anonymous NFT transactions and make it easier for hackers to sell stolen goods. On the other hand, it may also unlock more application scenarios for privacy NFTs.
Basic introduction
This proposal is an extension of the ERC721 token standard. It hopes to achieve anonymity in NFT transactions, thereby protecting the privacy of NFT transactions. The proposal is implemented by integrating SNARKs algorithm, Merkle tree, stealth address and other technologies. Buterin participated in the entire discussion of this topic. The most recent discussion was Buterin’s reply to the author on August 20.
briefly explains how it works. This scheme enables users to receive NFTs without letting other users know; using a stealth address generated from a shared secret between the sender and receiver, the recipient of the transmission is obfuscated, thus Protect NFT transaction privacy. The
proposal is currently in the idea stage. It has not yet gone through the stages of collecting feedback, modifying proposals, and final proposals. It is still far away from being finally implemented as a token standard. There are no products directly available to users, but the relevant development tools and code (have been open source ) is relatively complete and developers with technical capabilities can explore implementation solutions on their own.
Although the proposal is still in its early stages, the related technology is relatively mature, and it may be easier to develop new products in terms of contract wallets and privacy tools. NFT private transactions will undoubtedly unlock the possibility of more NFT gameplay in the future.
Shortly after the proposal was put forward, V God also proposed a more lightweight solution based on stealth addresses. The difference between
and
lies in the degree of privacy. Buterin's solution based on invisible addresses only hides the transaction parties and the transaction amount. The extension proposal also hides the ID of the NFT. The degree of privacy of privacy NFT is higher than that of Buterin who only uses invisibility. The address scheme is higher, but privacy NFTs are more technically difficult. The similarity between
and
is that the main technical implementation methods are similar, both parties jointly generate stealth addresses to protect transaction privacy. There are other developers in the
community who have proposed other development ideas. Some people suggest that privacy NFT should not be used as the NFT standard of Ethereum, but only as the standard or function of each contract wallet. This can also achieve privacy NFT or NFT transaction anonymity. In a sense, it is equivalent to transferring the work of Ethereum to various parties. Among wallet developers.
Some people think that privacy NFT components can be developed. If the invisible address is not built into a certain token protocol or a dedicated application, but a universal tool related to invisible addresses is built, this will enrich the applications on the chain. Composability. There may be three impacts on the privacy of
affecting
NFT.
Let’s talk about the negative side first. privacy NFT will make it easier for hackers to sell stolen goods.The NFT stolen by hackers can be sold anonymously. For the buyer, they only know that it is an 80E cheap monkey, and the buyer can continue to sell it anonymously. privacy NFT will also further facilitate the " mouse warehouse " behavior of some NFT project parties, increase the operating space for insider trading, and increase the user's risk of loss.
Let’s talk about the positive side, privacy NFT can help holders better prevent fraud. Because privacy NFTs do not allow scammers to know the specific attributes of the NFT held by the user, they then pretend to be the project party and send false links to guide users to authorize signatures, causing loss of user assets. Moreover, privacy NFT can also allow NFT holders to customize and hide certain specific attributes of the NFT during the transaction process, such as price, rarity, and NFT design elements, etc., promoting the anonymization and homogenization of the NFT, thereby splitting the NFT into components. Multiple homogeneous bills or futures promote the development of NFTFi.
Finally, it has a neutral impact. Because privacy NFT has censorship resistance and is more decentralized, it may promote the development of anonymous organizations. When a user joins an anonymous organization and needs to express their membership identity while not wanting members within the organization and external observers to know their other identity information, the anonymous organization can protect member privacy by sending privacy NFTs.
The organization can create a contract that sends private NFTs to an address submitted by members, in which the owner of the contract does not know the identity of the member. And when an organization needs to be sure that a member belongs to the organization, it can verify the identity of the member by verifying the privacy NFT, without any information being known to outside observers.
Editor in charge: Felix
