Vitalik Buterin has suggested there may be a low-tech approach to incorporating privacy features into NFT transactions.
Buterin implied Merkle trees and Zero-Knowledge Succinct Non-Interactive Arguments of Knowledge, or zk-SNARKs, were a more complicated method for stealth addresses for ERC-721 tokens while proposing his own solution. The Ethereum co-founder suggested instead that smart contract wallets could include a method that would allow the sender to essentially mask their address to third parties. Buterin said:
“You would be able to eg. send an NFT to vitalik.eth without anyone except me (the new owner) being able to see who the new owner is,”
Buterin suggested that using this method, senders would need to include enough ETH to pay fees 5–50 times through the transfer chain. However, he added that maybe there is a better generic solution that involves specialized searchers or block builders somehow.
