An important step regarding privacy solutions has been brought to the agenda in the Ethereum network. The proposal, prepared by Tom Lehman and called EIP-8182, is being evaluated for inclusion in the upcoming Hegota upgrade. This new proposal aims to offer protocol-level privacy in ETH and ERC-20 token transfers, meaning users can perform completely private transactions without being tied to both the main network and side applications.
EIP-8182: Single repository, integrated privacy
EIP-8182, which was first announced by Lehman, one of the founders of the Facet platform, in March, aims to create a single, protocol-integrated “shielded pool” for the Ethereum network. There are currently multiple fragmented privacy tools available on Ethereum, but this structure causes users to be dispersed among different systems, thus reducing the level of anonymity. The aim of EIP-8182 is to collect users’ transaction activities in a single large pool.
On the subject, Lehman emphasized that the current fragmented privacy infrastructure isolates users and reduces the level of anonymity in each separate pool, so a more unified and comprehensive anonymity set is needed.
Within the scope of the proposal, a smart contract will be used at the system level and will be based on a UTXO (unused constant output) based model. Additionally, there will be no need for extra management tools such as administrative keys, proxy processing powers or emergency pauses. In the transaction verification mechanism, the Groth16 BN254 proof system will be preferred.
Mini dictionary: Shielded pool is a privacy pool where decentralized anonymous transactions take place, users hide their identities and transaction details are not visible from the outside.
Wallet integration and user experience
With EIP-8182, wallet providers and decentralized applications will be able to directly access Ethereum’s integrated privacy infrastructure. Thus, users will be able to privately send ETH or ERC-20 tokens to any standard Ethereum address. The new system will also be compatible with existing Ethereum address formats and ENS domains, meaning there will be no need for complex addresses or additional processing steps for users.
EIP-8182 aims to provide a standard basis to developers. In this way, building blocks can be created to develop privacy-enabled applications, and user-focused, practical privacy solutions will become widespread throughout the Ethereum ecosystem.
Hegota upgrade and related offers
The Hegota upgrade brings together several proposals that will strengthen privacy and censorship resistance to the Ethereum network. Other notable offerings outside of EIP-8182 include EIP-8141, which enables direct deduction of withdrawal fees through transaction pools, and EIP-8250, which offers keyed nonces to enable common sender privacy frameworks.
The Hegota upgrade is a combination of the Bogota execution layer client and the Heze Consensus layer client. In February, the innovation named FOCIL was included as the main consensus development of the ecosystem. Now, with EIP-8182, the privacy function at the main network level has been brought to the agenda in a much stronger way and will stand out as an important topic in Hegota discussions in the coming period.
| Offer (EIP) | Basic Function | Possible Impact |
|---|---|---|
| EIP-8182 | Unified privacy repository and protocol integration | Standard and easy private transfers in Ethereum |
| EIP-8141 | Deduction of withdrawal fees from secret pools | Covering users’ transaction costs automatically and practically |
| EIP-8250 | Sender privacy with keyed nonce | Contribution to keeping identity confidential in multiple transactions |
All of these developments focus on building an infrastructure that will strengthen user privacy on the Ethereum network and support wider adoption of decentralized applications.
