0xbow launches Privacy Pools for legal on-chain privacy

The infrastructure provider focused on 0xbow confidentiality has launched privacy pools, a new blockchain tool that allows users to protect their transaction history while trying to follow the law.

On an article on March 31 on X, 0xbow announced the launch of the Mainnet, declaring that Ethereum (Ethn) Users can now achieve confidentiality on the chain while avoiding illicit funds. Privacy pools use zero knowledge of knowledge to activate private ERC-20 tokens transfers.

Unlike previous confidentiality mixers, this tool deposits deposits to prevent stolen or illicit funds from entering the system. The co-founder Ethereum Vitalik Buerin is one of the co-authors of the initial privacy pools research paper and publicly supported the project. After the launch of the Mainnet, Buterin was among the first to drop ETH in the swimming pool.

The system works through “association ensembles”, which by lots of transactions while checking that they are not linked to hackers, crooks or other bad players. If a deposit is then reported, it can be removed without affecting the others in the pool.

If the deposit of a user does not transmit the screening process, he can withdraw his funds from his original portfolio via a “ragequit” function, making confidentiality pools a non -guardian solution. According to 0xbow, confidentiality pools had already treated more than 21 ETH from 69 deposits. The initial deposit ceiling is defined at 1 ETH. However, as the system is tested further, the ceiling will be increased.

In recent years, confidentiality The tools have been faced with regulatory pressure due to concerns about illegal use. A major obstacle was to find a balance between user confidentiality and legal compliance. Several countries have taken measures to limit the use of confidentiality documents such as Monero and ZCASH due to their growing use in criminal activity.

In the best known case, the tornado arbor was sanctioned by the US Treasury foreign asset control office for having allegedly facilitated illicit transactions. However, an American court of appeal judge In November 2024, the sanctions were illegal and reversed.

According to the court’s decision, the immutable intelligent contracts of Tornado Cash are not considered “property” which can be seized, and the sanctions have been unfairly imposed on a decentralized protocol. We do not know if the new 0xbow strategy will meet global regulatory requirements.