CryptoSlate11 minutes ago

Published on September 07, 2023 10:00 GMT+00:00edited on September 07, 2023 10:04 GMT+00:00

A new research paper led by Ethereum creator Vitalik Buterin proposes “Privacy Pools,” a novel approach to balance privacy protections and regulatory compliance in cryptocurrencies.

The paper outlines how Privacy Pools allows users to prove their crypto withdrawals do not originate from illicit sources without revealing their complete transaction histories. Users can generate zero-knowledge proofs demonstrating their withdrawals are associated with approved “sets” of past deposits.

Privacy pools.

According to the paper, this voluntary disclosure system incentivizes honest users to dissociate themselves from criminals. By excluding suspicious actors from their association sets, legitimate users can signal regulatory compliance while still preserving privacy within their sets.

Public …