Ethereum Inventor: There Is An Alternative To This Troubled Altcoin!

An era of closed coins has blew in the crypto world. However, the use of misdemeanor revenues to obscure this tide turned the tide. Some countries even banned Tornado Cash, which stands out among them. Ethereum co-founder Vitalik Buterin wrote a joint article on the regulation-friendly, Tornado Cash alternative. In this direction, Buterin drew attention to a privacy protocol called Privacy Pools.

Ethereum inventor wrote a joint article on Privacy Pools

The protocol aims to verify the legality of user funds without revealing the full process history. It uses zero-knowledge proof for this. Ethereum co-founder Vitalik Buterin, along with core developer Ameen Soleimani, researcher Jacob Illum of analytics firm Chainalysis, and academics Matthias Nadler and Fabian Schar, wrote a research paper focusing on a privacy protocol called Privacy Pools. The article suggests that this platform could be a potential alternative to the troublesome Tornado Cash. It also tries to show that it is possible for financial closure to coexist with regulation.

The authors, whose Ethereum inventor is in the middle, describe the new platform as a “new smart contract-based closure enhancing protocol” designed to increase process closure on blockchains. Privacy Pools uses zero-knowledge evidence. This way, the user doesn’t reveal the full process history to determine whether their funds are coming from legitimate sources.

Financial tacitness and regulation: A dual approach

The primary goal of the project is to create what the authors describe as the “dividing balance”. Simply put, the system seeks to establish a stability amid implied and legal requirements. It aims to filter out contact funds with error activities in the middle. The article, co-authored by Ethereum co-founder Vitalik Buterin, draws attention to the following issues:

The main idea of ​​the proposal is to allow users to post zero-knowledge evidence that their funds are (not) originating from known (illegal) sources, without making the full process graphs public.

The authors suggest that financial tacitness and regulation may exist somewhere in the middle. cryptocoin.com As you follow, they initially cited Tornado Cash as a useful concealment tool. However, they also admitted that it was prone to misuse by later illegal actors, including the Ethereum inventor. Tornado Cash faced legal challenges last year for allegedly streamlining processes for the North Korean-linked hacking cluster Lazarus. In August 2022, Tornado Cash was blacklisted by the US Treasury Department’s Office of Foreign Assets Audit for alleged involvement in illegal activities.