Researchers from the Stanford University and Visa (NYSE:V) Research have developed a privacy mechanism for Ethereum (ETH) smart contracts. A paper describing the mechanism was published on Stanford University’s Applied Cryptography Group website on Feb. 20.
According to the paper, the researchers created “a fully-decentralized, confidential payment mechanism” called “Zether” that is consistent with both Ethereum and other smart contract platforms. The developers reportedly developed a new smart contract — that can be executed either individually or by other smart contracts — that maintains the account balances encrypted and enables the deposit, transfer and withdrawal of funds through cryptographic proofs.