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- 1 One of the first contributors to Tornado Cash has built the Privacy Pools service.
- 2 This service will allow users to send and receive crypto with additional upgrades anonymously.
Last year, when the United States authorities controversially banned citizens from using the “coin mixer” Tornado Cash, this raised the concern of Ethereum developers (devs). This led the authorities to look for a sustainable solution and work progressively towards it.
Following the result-driven urge, Ethereum devs developed the new coin mixing app, Privacy Pool, that allows people to send and receive Ethereum (ETH) anonymously with a feature that states the authenticity of the user. The demo of this app is scheduled to release on February 4th.
The Privacy Pools, which is currently in its demo period, is ready to aim to pick up where Tornado Cash last left. While it is also following the steps of regulators and law enforcement to leave it alone.
Privacy Pools can be understood as a fork of Tornado Cash created by Ameen Soleimani with one other dev. The work of these pools allows users to publicly show that their withdrawals are not connected to bad actors.
The users can still do anonymous transactions with an option that makes the clarity of a safe money transaction. And also that the transaction is not a part of any hack. However, the new app will work just like Tornado cash. When a transaction clicks the option to withdraw funds, it can generate a zero-knowledge proof which publicly indicates that they are not using a criminal blockchain address and also keeps the user’s privacy.
The early Tornado Cash contributor
As one of the early contributors to Tornado, Ameen Soleimani stated that he did not contribute to the project’s code. He also shared that he helped steer the project’s direction during its early days, besides contributing to Tornado’s initial funding through the developer’s MolochDAO.
The developer of the new app Soleimani said in a media interview that “It is not meant to be a final replacement product—it is meant to start a conversation.”
Soleimani said, “The hope is that regulators are less interested in sanctioning [Privacy Pools] because it helps them accomplish their goals.”
Last year’s Tornado Cash Drama
In August 2022, the US Treasury Department sanctioned Tornado Cash. Over which the authorities specify that criminals, especially North Korean state-sponsored hackers, Lazarus Group, were using the cash to launder dirty cash.
This move by the Treasury Department was criticized not only by the crypto community but also by politicians. In the same month, the US. Congressman Tom Emmer wrote a letter to Treasury Secretary Janet Yellen about its sanctions on Tornado Cash and said, “Privacy is normal.”
Meanwhile, the team of Tornado Cash was continuously on the watchlist. And late in August 2022, Dutch police arrested the developer of Tornado Cash, Alexey Pertsev, who is set to stay in prison until an April hearing.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
