Crypto Industry Supports Regulatory-Friendly Mixing Protocol Proposed by Vitalik Buterin
A paper co-authored by Ethereum founder Vitalik Buterin, proposing a regulatory-friendly mixing protocol on Ethereum called Privacy Pools, has gained support from major figures in the crypto industry including the founders of Coinbase, Metamask, and Messari.
Privacy Pools would enable users to prove that their funds are not from unlawful sources without revealing the complete transaction history. The protocol was developed as an alternative to Tornado Cash, whose founders are facing charges of money laundering and sanctions violations.
Fred Ehrsam, co-founder of Coinbase and Paradigm, stated that Privacy Pools could be a crucial tool for addressing regulatory challenges while maintaining privacy on public blockchains. Dan Finlay, co-founder of MetaMask, offered to help the paper’s authors secure grant funding from MetaMask Grants DAO to support the development of wallet support for Privacy Pools.
Hot Take:
The proposal for Privacy Pools, a regulatory-friendly mixing protocol on Ethereum, has received significant support from key players in the crypto industry. While some express optimism about its potential to address regulatory challenges while preserving privacy, others remain skeptical about its long-term implications and the potential for encountering similar legal issues as Tornado Cash. Nonetheless, the proposal represents an important step toward enhancing privacy on public blockchains and could have a significant impact on the future of the crypto industry.
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