on June 18, a proposal named "Confidential Wrapped Ethereum Privacy" was posted on the Ethereum research forum. The proposal introduces the concept of confidential Wrapped Ethereum (cWETH), aiming to achieve privacy protection for ETH transactions at the application layer. cWETH combines the Twisted ElGamal commitment mechanism and Diffie-Hellman protocol with elliptic curve, and uses zk-SNARKs to verify the legitimacy of transactions, allowing users to make peer-to-peer payments without revealing balance and transfer amounts. Compared to existing solutions, cWETH can access encrypted balances without solving the discrete logarithm problem, improving efficiency. This proposal is expected to develop into a complete confidential token standard (EIP).
