The stealth address is a method where additional security can be granted to a user of a cryptocurrency. For example, if someone wanted to receive a number of tokens of a cryptocurrency from a sender as a payment for work, but didn’t want anyone else to know about it, then they could give the sender a stealth address. When the sender sends the funds to the receiver, a random unique address is created where the funds will be shown to have gone on the blockchain. What this means is there is no link between the stealth address and any other transaction address the receiver may have used. This therefore provides a layer of anonymity because no one will be able to see how the receiver spent their received funds.

Stealth addresses is a method by which additional security can be granted to user of a cryptocurrency. For example, if Alice wanted to receive 5 tokens of a cryptocurrency from Bob as a payment for a job, but didn’t want anyone else to know about it, then she could send Bob a stealth address. When Bob sends the funds to Alice, a random unique address is created where the funds will be shown to have gone on the blockchain. What this means is, there is no link between the stealth address and any other transaction address Alice may have used. Therefore, this provides a layer of anonymity because no one will be able to see how Alice spent her received funds.