The San Francisco-based payments firm, Ripple is proposing another new feature that would enhance privacy on the XRP Ledger.
Ripple developer Nik Bougalis says that the new feature added to the platform would allow source and destination tags to be cryptographically mixed. The XRP Ledger uses these tags, notwithstanding traditional cryptocurrency addresses, to appropriately find a transaction recipient.
Nik Bougalis says the proposal is aimed at making it impossible for third parties to handily distinguish and correlate transactions using these tags. He additionally says the modification would not fundamentally influence the ledger’s scalability.
“Transaction times aren’t really affected; perhaps a few extra milliseconds per transaction on the sending and receiving ends. No performance implications for the network. You only need to generate one keypair. You then do a bit of calculations per transaction.”
With regards to the proposal’s effect on cryptocurrency regulation, Bougalis says that he questions it would have any serious ramifications.
“From the point of view of a third party (including a regulator) a tag is just an opaque number, whether it’s blinded or not. Regulators likely need to work with exchanges already because of that; blinded tags won’t really change that.”
Some Ripple developers drafted the proposal that can be embraced in case it receives endorsement from an 80% majority of its system validators.