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Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
by
r1s2g3
on 14/06/2018, 19:11:38 UTC

Question:  What is a stealth address? How does it work and how does one use them? 

If a business/organization start accepting Crypto currency then business will need to put his public address. But all the transactions on this public address can be tracked.

Disadvantage for business,
1. revenue details of business are available to competitors.
2. Competitors are knowing the client wallet id too (if they able to find  client  associated with that wallet id, they can try to break that client)
3. They can track the suppliers for that business too.

What business can do.

Business can create a  series of public address  to be used individually with each client or supplier  or it can generate a stealth address .
Now when the client send the payment to business in this stealth address,  a unique address will be automatically generated and funds will go to address  and only sender and receiver determine if payment is complete and no outsider will able to trace back the transaction.

So Stealth Address provide anonymity to the sender and receiver address.