Is there currently any way to do confidential transactions with Ethereum for a custom token?
If not, is there any work/research being done on how this might be possible?
Ethereum Stack Exchange is a question and answer site for users of Ethereum, the decentralized application platform and smart contract enabled blockchain. It only takes a minute to sign up.Sign up to join this community
In the future, you will be able to use ring signatures to blind the sender. Blinding the balance can be done as it is in Blockstream's Elements sidechains, but would probably be very expensive from the EVM. Perhaps that kind of capacity will also be added when ring signatures are. In the meantime, state channels are the best option.
State Channels will allow privacy for tokens. Basically, they allow you to transact off-chain and eventually settle back the state of the transactions to the chain. The raiden.network is Ethereums work in progress to have a state channel network.
Thank you for your interest in this question.
Because it has attracted low-quality or spam answers that had to be removed, posting an answer now requires 10 reputation on this site (the association bonus does not count).
Would you like to answer one of these unanswered questions instead?