Coinbase Advances Private Stablecoin Transactions on Base Through Iron Fish Integration

• Some people choose to employ crypto transactions that are privacy-shielded since it reduces the likelihood that they will be victims of hackers.
• When users sign up for an Iron Fish account, theyll obtain these view keys. They may use these to provide authorities “read-only access” information in case they need to access their account.

Private stablecoin transactions on the Ethereum layer-2 Base are getting closer to becoming viable, according to Coinbase CEO Brian Armstrong. This might provide a much-needed boost to privacy on public blockchains.

Coinbase purchased crypto privacy startup Iron Fish in March to fulfill its aim of “Base is building private transactions,” as Armstrong said in a post on X on Tuesday.

While many were wondering whether Know Your Client checks would be required by the privacy solution, Armstrong chose to ignore these questions and instead promised to release more information shortly. Some people choose to employ crypto transactions that are privacy-shielded since it reduces the likelihood that they will be victims of hackers or fraudsters, protects their financial data from public view, and so on.

Privacy Still a Concern

On the other hand, prominent figures in the cryptocurrency sector who have pioneered privacy features, such as Alexey Pertsev and Roman Storm, creators of Tornado Cash, and Keonne Rodriguez and William Lynch, co-founders of Samourai Wallet, have all faced intense prosecution.

On the other hand, depending on Iron Fish‘s present implementation, Base’s transactions could not be completely private. Iron Fishs website states that the platform employs “view keys” and zero-knowledge proofs to ensure the privacy of transactions, but that data may still be revealed in response to a request from a tax department or other enforcement body.

When users sign up for an Iron Fish account, theyll obtain these view keys. They may use these to provide authorities “read-only access” information in case they need to access their account. To aid in this endeavor, Iron Fish has introduced ZK-proofs, which allow users to verify anything while keeping just the essential details hidden.