Fluidkey announced that it has opened up its optimism-based alpha to more users, allowing them to test their private solutions. Fluidkey aims to solve the transaction privacy problem in EVM chains by using ENS and stealth addresses, allowing users to use a new self-custodian for each payment, and separating these movements to prevent linkability.
Fluidkey opens Alpha to address payment traceability in EVM networks
Fluidkey, a privacy-focused project, has announced that it has opened the doors for users to be included in its alpha testing activities on top of Optimism. The project aims to address the privacy issue of public addresses in Ethereum Virtual Machine (EVM) chains, where all transactions are associated with only one address.
To this end, Fluidkey combines Ethereum Name Service (ENS) domains with stealth addresses, allowing the user to generate a different self-custody address for each payment made, addressing the privacy and sympathy concerns for EVM chains.
While this can be achieved without using Fluidkey by manually managing a plethora of wallets, Fluidkey makes it transparent to the user, grouping all payments under the same ENS domain so they are visible on a centralized dashboard. The solution is designed to be integrated into any solution that allows ENS domain integration, facilitating its implementation in different projects without rewriting software for this task.
While Fluidkey breaks payment linkability, preventing an external user from linking a payment to a receiving address, it does enable transaction traceability. This facilitates the work for users to disclose the originating funds to trusted third parties such as tax authorities or accountants, which is different from mixers and other similar solutions.
The tool is currently only available in Optimism, but is expected to be deployed on Ethereum Mainnet, Arbitrum, Polygon, Base, and Gnosis Chain.
The project has been in the works since 2023, when it was one of the winners of the Ethrome Web3 hackathon.
What do you think of Fluidkey and its approach to addressing the privacy issues arising in public EVN chains? Tell us in the comments below.