We recently integrated privacy pools into Cloaked, and I want to explain why these two things fit together. @0xprivacypools let you deposit funds into a shared pool and withdraw with a ZK proof that says I had money in here, and it wasn't from a sanctioned source without revealing which deposit was yours. The onchain link between depositor and recipient is severed. You get privacy without associating your funds with potentially illicit activities. But where do the funds go when they come out of the pool? If you withdraw to your regular wallet address (the one tied to your ENS, the one you've been using for DeFi, for mints, for sending to friends) you've re-linked yourself at the endpoint. An observer can't tell which pool deposit was yours, but they can see that you received a withdrawal. This is the withdrawal endpoint problem. Stealth addresses solve it. A stealth address is a one-time address, derived cryptographically, that has never appeared on-chain before. It can't be tied to your identity. When a withdrawal lands at a stealth address instead of a known wallet, anonymity is preserved. The pool breaks the backward link: it is difficult to trace a withdrawal to its deposit. Stealth addresses break the forward link: you can't trace a withdrawal to its owner. Vitalik made a version of this argument in his wallet post from December 2024. That privacy tools requiring a separate app is a dead end, and that private transfers need to be built directly into the wallet. Make it the default. That's what we built. @cloaked is a self-custodial wallet and privacy is built in. When you receive funds, they land at a stealth address. When you deposit into a privacy pool, your funds join an anonymity set. When you withdraw to yourself, the wallet generates a ZK proof and sends the funds to a new stealth address, with no connection to the deposit or to your other addresses. The two technologies are better together and give users better privacy & better UX today.
- 1 reply
- 4 recasts
- 7 reactions
this is actually what inspired cloaked. on farcaster, everyone's wallet is right there. love fc, love the wallet, but anyone can see your full balance and every tx you've ever made just by clicking your profile.... we wanted to fix that. Started with the mini app, but felt that passkeys were too good to not have a web app & support them.
- 0 replies
- 0 recasts
- 8 reactions
liv.clkd.id ;)
- 0 replies
- 0 recasts
- 3 reactions