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Glossary Term

Stealth Address

A privacy method generating a fresh one-time address for each payment, so a recipient's activity can't be linked.

A stealth address lets a recipient publish a single address while every payment they receive actually goes to a unique, one-time address that only they can detect and spend from. This prevents observers from linking multiple payments to the same recipient — a major privacy leak on transparent ledgers where reusing an address exposes your entire history.

Stealth addresses are used in privacy coins like Monero and have been proposed as opt-in privacy features for Ethereum. They address a specific, real weakness: on public chains, a reused address is a permanent, searchable financial record. The technique offers privacy without a full privacy chain, though it adds scanning complexity for the recipient’s wallet. Part of the broader toolkit for reconciling blockchain transparency with financial privacy.

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