Ethereum ERC-20 Token Standard to Get Privacy Upgrade: Details

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The Ethereum network is always evolving, a notably all-encompassing change. In an unexpected twist, stablecoin issuer Circle has proposed upgrading the ERC-20 token standard to a more private, more confidential one. In partnership with Inco Network, the firm’s research arm has released the Whitepaper for Confidential ERC-20 Framework.

What might change in ERC-20 framework

As the standard that all tokens built on Ethereum follow, this Confidential ERC-20 Framework might prove invaluable. Per this proposition from Circle Research, tokens built using the confidential framework will get an additional privacy feature.

The tokens are wrapped in a confidential version that masks their balances and transactions. The ERC-20 tokens created under this confidential framework will still maintain regulatory compliance despite these privacy features.

As its update revealed, the confidential framework offers four unique features for developers. The first is the privacy focus for concealed balances. Then, developers can access risk management tools to view and transfer rules for programmatic risk management.

The Circle Research and Inco Network framework will also offer developers diversity. Developers can create diverse applications ranging from payroll to supply chain using the confidential ERC-20 provision. Lastly, the new proposal will form a technological backbone that utilizes Fully Homorphobic Encryption (FHE) within EVM dApps.

Ethereum and future scaling plans

Despite ranking as the first blockchain network for smart contracts, Ethereum has continued to innovate. Known for its advanced execution layer framework, Vitalik Buterin has hinted at a series of upgrades for the protocol. The goal is to take Ethereum to a level where running nodes is possible on mobile in the next decade.

With a series of plans unveiled via his blog, Vitalik has shared his take on The Verge and other upgrades ahead for the protocol. With alternative entities also working to improve Ethereum, the protocol might continue to set a standard for all competitors.