One of the foundational privacy features on Penumbra is the use of ephemeral addresses. These are single-use, one-directional addresses designed to keep transactions untraceable. Unlike traditional blockchain addresses that can be reused and linked to identities, ephemeral addresses are automatically generated for each transfer and discarded after use.
On Penumbra, every transaction is shielded by default. When someone sends you funds from outside the shielded pool (e.g. from a Cosmos chain like Osmosis or Noble), they use your full viewing address, which allows the network to route the funds correctly. However this could, in theory, reveal that you’re receiving assets if the same address is reused.
When you send funds out, however, using an ephemeral address, this means that this address:
This means that even the recipient of your transfer cannot trace your identity or link the funds to your account history. The result? True, untraceable privacy.
In this guide, we’ll walk you through sending funds from your Prax Wallet using an ephemeral address, and show you how to verify the transaction anonymously using the public ledger.