Anonymity Analysis of the Umbra Stealth Address Scheme on Ethereum

Abstract

Stealth addresses are a privacy-enhancing technology that provides recipient anonymity on blockchains. In this work, we investigate the recipient anonymity and unlinkability guarantees of Umbra, the most widely used implementation of the stealth address scheme on Ethereum, and its three off-chain scalability solutions, e.g., Arbitrum, Optimism, and Polygon. We define and evaluate four heuristics to uncover the real recipients of stealth payments. We find that for the majority of Umbra payments, it is straightforward to establish the recipient, hence nullifying the benefits of using Umbra. Specifically, we find the real recipient of $48.5\%$, $25.8\%$, $65.7\%$, and $52.6\%$ of all Umbra transactions on the Ethereum main net, Polygon, Arbitrum, and Optimism networks, respectively. Finally, we suggest easily implementable countermeasures to evade our deanonymization and linking attacks.