Privacy-Centric Design in Public Blockchains

Public blockchains like Ethereum emphasize transparency, yet this can come at the expense of user privacy. As Web3 adoption grows, designing interfaces that carefully balance accountability with anonymity becomes essential. This guide examines three key pillars of privacy-focused design: stealth addresses, opt-in data sharing, and hybrid Tor-blockchain flows. It offers practical strategies to safeguard users while maintaining decentralization.

1. Stealth Addresses: UX Patterns for ERC-5564

How Stealth Addresses Work

Stealth addresses, such as those defined by Ethereum’s ERC-5564 standard, enable private transactions by creating one-time-use addresses for recipients. Important elements include:

• Stealth Meta-Address: A public identifier (like bob.eth) from which unique stealth addresses are derived.

• Shared Secret: A cryptographic key shared between sender and recipient to access funds.

• View Tags: Mechanisms that optimize transaction discovery and reduce computational overhead for recipients.

UX Design Strategies

Auto-Generation and Detection

• On the sender side, interfaces can automatically suggest stealth addresses when users enter ENS names, with clear visual cues differentiating stealth from public addresses.

• On the recipient side, wallets like Fluidkey automatically scan for incoming stealth transactions and notify users when funds arrive.

Educational Tools

• Interactive demos that simulate stealth address creation help users understand the process.

• Clear explanations about what stealth addresses conceal and what remains visible enhance trust.

• Security badges indicate audited status, guiding users in assessing risks.

Case Study
Umbra Cash’s integration of in-app tutorials and auto-claim features reduced user errors by 40%, demonstrating the value of guided UX in privacy tools.

2. Opt-In Data Sharing Interfaces

Principles for Ethical Consent

• Provide users with granular control over which data to share, such as transaction histories or social credentials.

• Clearly communicate incentives for data sharing, including token rewards or platform benefits, ensuring transparency and voluntary participation.

3. Hybrid Tor-Blockchain Flows

Emerging solutions integrate Tor’s anonymity network with blockchain interactions to protect user identity while maintaining verifiability. These hybrid flows offer enhanced privacy for sensitive activities without sacrificing decentralized trust.

Conclusion
Privacy-centric design on public blockchains demands thoughtful balance between transparency and anonymity. By adopting stealth address protocols, offering opt-in data sharing with ethical consent, and exploring hybrid anonymity solutions, developers can empower users to protect their privacy without compromising the decentralized nature of Web3.