How Do Stealth Addresses Work in Privacy Coins?

Stealth addresses are a cryptographic technique used to obscure the recipient's public address on the blockchain. For every transaction, the sender generates a unique, one-time destination address for the recipient.

Only the recipient can scan the blockchain using their private view key to identify funds sent to them. This ensures that the recipient's main public address is never directly exposed on the public ledger, breaking the linkability of transactions.