ChainCatcher message, a proposal named "Confidential Wrapped Ethereum Privacy" has been published on the Ethereum research forum. This proposal introduces the concept of confidential Wrapped Ethereum (cWETH), aimed at achieving privacy protection for ETH transactions at the application layer. cWETH combines the elliptic curve Twisted ElGamal commitment scheme and the Diffie-Hellman protocol, utilizing zk-SNARKs to verify transaction legitimacy, allowing users to make peer-to-peer payments without revealing balances and transfer amounts.
Compared to existing solutions, cWETH does not require solving the discrete logarithm problem to access encrypted balances, improving efficiency. This solution is expected to develop into a complete confidential token standard (EIP).
