Tornado Cash

Simply

Read

Tornado

<div class="cryptonews"> 
 <p class="is-style-lead">Ethereum(ETH) co-founder Vitalik Buterin; core developer Ameen Soleimani; Jacob Illum of Chainalysis; and scholars Matthias Nadler and Fabian Schar have co<a rel="noopener noreferrer nofollow" title="-authored" href="https://thebittimes.com/tag/authored.html">-authored</a> a research <a rel="noopener noreferrer nofollow" title="paper" href="https://thebittimes.com/tag/paper.html">paper</a> on a novel privacy protocol dubbed “Privacy Pools.” </p> 
 <p>The <a rel="noopener noreferrer nofollow" title="paper" href="https://thebittimes.com/tag/paper.html">paper</a> presents a framework, positioning it as a potential successor to Tornado Cash, a privacy-centric service that recently came under regulatory scrutiny.</p> 
 <figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"> 
  <div class="wp-block-embed__wrapper"> 
   <blockquote class="twitter-tweet" data-width="550" data-dnt="true"> 
    <p lang="en" dir="ltr">1/ New privacy <a rel="noopener noreferrer nofollow" title="paper" href="https://thebittimes.com/tag/paper.html">paper</a> with @VitalikButerin, Jacob Illum (@chainalysis), @mat_nadler, @fschaer!https://t.co/ovH1iYXXY6<br><br>We explored new compliance opportunities made possible by https://t.co/Nt4b2Tgx1D, where users can provably dissociate from illicit funds.<br><br>story below pic.twitter.com/Tq0zYfbwlL</p>— Ameen Soleimani (@ameensol) September 6, 2023 
   </blockquote> 
  </div> 
 </figure> 
 <p>Privacy Pools is a “smart contract-based privacy-enhancing protocol” designed to balance financial privacy and regulatory compliance. </p> 
 <p>Using advanced cryptographic techniques like zero-knowledge proofs, the protocol verifies the legitimacy of user funds without revealing their complete transaction history.</p> 
 <div class="cn-block-related-link"> 
  <svg class="cn-block-related-link__icon icon" aria-hidden="true"> <use xlink:href="#"></use> 
  </svg> <span class="cn-block-related-link__prefix"> You might also like: </span> Ethereum co-founder praises X’s Community Notes for echoing crypto principles 
 </div> 
 <p><strong><br></strong>The crux of Privacy Pools rests on establishing a “separating equilibrium”—a term coined by the authors to describe a system that filters out illicit funds while maintaining compliance with regulatory standards.</p> 
 <p>It enables private and legal financial transactions, which has been a difficult task in the blockchain field. Simply put, the protocol lets users prove the legality of their funds without revealing their entire financial transaction history.</p> 
 <p>The authors also provided a contextual backdrop by mentioning Tornado Cash, a previous player in the blockchain privacy arena. </p> 
 <p>Although useful for privacy-oriented transactions, Tornado Cash became embroiled in a legal debacle for allegedly facilitating transactions connected to the North Korea-affiliated hacking group, Lazarus.</p> 
 <p>As of August 2022, it had been blacklisted by the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC), highlighting the need for a more balanced approach to privacy and regulation.</p> 
 <figure class="wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio"> 
  <div class="wp-block-embed__wrapper"> <iframe title="Vitalik Wants To Move ETHEREUM To Privacy?  | JAIL TIME" width="1020" height="574" src="https://www.youtube.com/embed/niFWvPYIcuU?feature=oembed" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen></iframe> 
  </div> 
 </figure> 
 <p>The introduction of Privacy Pools aims to transform blockchain-based financial transactions. </p> 
 <p>The authors suggest that combining privacy and regulation could be advantageous for crypto’s long-term sustainability. </p> 
 <p>If Privacy Pools work well, they might provide a framework for financial privacy that also complies with regulations.</p> 
 <div class="cn-block-related-link"> 
  <svg class="cn-block-related-link__icon icon" aria-hidden="true"> <use xlink:href="#"></use> 
  </svg> <span class="cn-block-related-link__prefix"> Read more: </span> Vitalik Buterin throws shade at XRP centralization 
 </div> <span class="google-news-banner__label">Follow Us on Google News</span> 
</div> 
<p>Source: <a rel="noopener noreferrer nofollow" target="_blank" href="https://thebittimes.com/tornado-cash-alternative-detailed-in-paper-co-authored-by-vitalik-buterin-tbt61808.html">https://thebittimes.com/tornado-cash-alternative-detailed-in-paper-co-authored-by-vitalik-buterin-tbt61808.html</a></p>

Tornado Cash alternative detailed in paper co-authored by Vitalik Buterin

TheBitTimes

Other articles published on Sep 6, 2023

$691,000 PERP Deposit by Perpetual Protocol Foundation Amid 31% Price Surge: Traders React

Ethereum (ETH) Price Likely to Decline Further Amid Bear Dominance

Crypto Fear & Greed Index Is Showing Fear – ApeCoin (APE), Decentraland (MANA), and Watchvestor (...

Bitcoin Miners Consider Hedging Options for Revenue Stability

DVN Stock Forecast: Which One Will Be In Action, Bull Or Bear?

NFT Market Escalates by 20 Percent; BAYC Dominates Market

Join our free newsletter for daily crypto updates!