Bulletproof transactions were introduced at Stanford University.
“Bulletproofs are short non-interactive zero-knowledge proofs that require no trusted setup. A bulletproof can be used to convince a verifier that an encrypted plaintext is well formed.”
Here is a potential scenario:
- Person transfers ETH to POA Network using a bridge
- This is not yet confidential since there are bridge signatures
- Then performs bulletproof transaction that is really cheap on POA Network
- Then transfers it back to Ethereum network or different POA clone using brigges. (Possibly performs another bulletproof transaction)
End Result: This new address has a balance that is untraceable.
Would like to hear your thoughts on this