#2 — This is the second post in our “BlockWallet in Action” series. In this series, we explore realistic and helpful ways to use BlockWallet after the upcoming release.
In last week’s post, we explored the benefits of using BlockWallet for private transfers between two individuals. This sort of transfer is appropriate for transactions that are low in volume and frequency. When people regularly receive transfers from a number of individuals, they often opt to use ENS domains.
In short, ENS domains are custom addresses on the Ethereum blockchain. They eliminate the need to copy or type long hexadecimal addresses and give users a memorable one instead. For example, users could use “custom.eth” instead of “0xaec7e1f531bb09115103c53ba76829910ec48966” as their address. People can use ENS domains to receive donations, host websites, or simply profit through trading them. Despite being a favorite among content creators and influencers in decentralized finance, they come with one critical drawback.
A Lack Of Privacy
Let’s introduce Ethan. He has a YouTube channel. For him, it’s a full-time job and his sole source of income. His channel covers different topics related to decentralized finance and cryptocurrency. The ad revenue from Ethan’s videos is too low to cover his expenses, so he relies on donations from viewers that wish to support his channel. As he and his audience are deeply embedded in the DeFi world, Ethan accepts donations in $ETH. He wants to use “Ethan.eth” as an ENS domain for his donations, but has one major concern; his privacy.
Before Ethan even purchases an ENS domain, he needs to think about his privacy. Purchasing a domain would link it to his personal portfolio. If Ethan connects his wallet to an ENS domain, his portfolio is exposed. As someone heavily invested in cryptocurrency, Ethan believes that his personal finances should not be publicly available.
Once the ENS domain is public, so is Ethan’s wallet, and as a result the value of his portfolio, the tokens he holds, and the transfers he has made in the past. Even if he creates a secondary wallet for his donations, linking it to his primary wallet via outgoing transactions would be a simple task for curious snoopers, or worse — bad actors.
As a result of these concerns, Ethan feels that he does not have complete control over his finances. With a lack of privacy, his freedom to choose how to use his funds is lost.
Stay Private With BlockWallet
When purchasing a dot com domain (DNS), it is not necessary to forfeit your privacy or make your personal finances public. Here at BlockWallet, we believe that the same principle should apply to decentralized finance and in turn ENS domains. BlockWallet works by mixing transfers within a privacy pool that obfuscates the origins of your wealth. You can monitor and access your funds while they remain anonymous to others.
When purchasing an ENS domain, Ethan could use BlockWallet to not link his portfolio to the domain. BlockWallet lets you deposit crypto into a fresh address separate from your portfolio and previous transactions. It’s possible to have multiple blank addresses that are not linked in any way. Ethan could create a new address and transfer funds there via the BlockWallet smart contract. The origin of the funds would be untraceable, and Ethan would be free to purchase an ENS domain not linked to his personal portfolio. “Ethan.eth” would be traceable to an address with no prior history, and he would be free to have a private address for his portfolio.
Ethan could also create a separate address for his donations. When it’s time to move funds from his donation wallet to his personal portfolio, he could use BlockWallet to ensure that he leaves no trace and is free from prying eyes. The ability to privately and securely use ENS domains opens up a large window of opportunity for Ethan, and he can feel at ease knowing that nobody has an eye on his personal finances.
In a world where staying private is becoming more and more difficult, BlockWallet offers a solution. As technology advances, privacy can often be forgotten and left in the background. BlockWallet is bringing privacy back to the forefront of public debate by giving people the chance to take back control of their finances.
BlockWallet is the most private, non-custodial browser extension wallet, where users can store funds and interact with their favorite blockchain applications privately.
As crypto sees mainstream adoption, blockchain’s lack of privacy poses real security risks for newcomers and enthusiasts alike. BlockWallet is here to ensure that on-chain privacy does not lag behind. The wallet provides a set of advanced privacy tools wrapped in a familiar and user-friendly wallet experience, eliminating the friction faced by millions of users and making privacy accessible for everyone, everywhere.
Blockwallet uses battle-tested privacy-enhancing technology to protect your financial data. When you make transactions or interact with blockchain applications, the requests are sent through Privacy Proxies by default, concealing the IP address and other metadata, which can be used to identify the user. You can also use the Privacy Pools feature, powered by zk-SNARKs technology, to deposit and mix funds in a smart contract. This allows transferring funds without links to your history and identity on the blockchain, effectively rendering them untraceable.
Anyone can easily install BlockWallet and start reaping the benefits. Besides full privacy functionality, BlockWallet comes packed with an array of features that go beyond privacy for a seamless user experience. With full Web 3.0 support, the wallet allows you to connect to any dApp and harness the power of the decentralized web.
Reclaim your financial privacy on blockchain. Get BlockWallet.