What You Should Know
- New privacy tools for Ethereum, such as Oxbow’s, are adding transactions.
- Privacy pools have processed 238 transactions totaling 67.49 ETH within three days of launch.
- The system employs zero-knowledge proofs to ensure privacy while adhering to compliance by screening for illicit funds.
“Tornado [Cash] is dead, but privacy won’t die,” an ether enthusiast remarked on X after Oxbow’s Ethereum privacy tools went live on April 1 to facilitate on-chain privacy while dissociating from illicit funds. Translation: Tornado [Cash] is no longer operational, but privacy solutions will persist.
The uptake for the privacy pools has been promising, having handled 238 user deposit transactions worth 67.49 ETH in the initial days. Ethereum founder Vitalik Buterin was among the first to use the new tool to deposit ETH.
These privacy pools utilize zero-knowledge proofs and commitment schemes to enable ether deposits and subsequent withdrawals, effectively maintaining the anonymity of users’ funds while providing necessary regulatory oversight.
The architecture integrates:
- A contract layer for managing assets
- A zero-knowledge layer ensuring user privacy
- A compliance layer filtering transactions to avoid links to illicit entities such as hackers.
Currently, deposit limits range between 0.1 ETH and 1 ETH, with plans for future adjustments following the initial evaluation phase.
“This is only the beginning. The road to making privacy normal again is long and exciting, and we can’t do it alone!” said 0xbow on X.
