“Tornado [Cash] is dead, but privacy won’t die,” an ether enthusiast declared on X following the launch of Oxbow’s Ethereum privacy tools on April 1st. This innovative platform aims to facilitate on-chain privacy while maintaining a clear distinction from illicit funds.
The enthusiasm for these new privacy pools is reflected in their early performance, having processed 238 user deposit transactions totaling 67.49 ETH within just three days. Ethereum co-founder Vitalik Buterin lent his support by being among the first to deposit ETH, as evidenced in his enthusiastic tweet.
Oxbow’s privacy pools utilize zero-knowledge proofs and commitment schemes to allow users to deposit and withdraw ETH discreetly. This model breaks the connection between deposit and withdrawal addresses, akin to having a specialized bank account that safeguards both your identity and your financial details.
The architecture of the privacy pools consists of three important layers: the contract layer for asset management, the zero-knowledge layer for privacy assurance, and the association set provider layer skilled in compliance and fund vetting. These interconnected layers collaborate to uphold user privacy while scrutinizing transactions for potential links to illicit activities, including those related to hackers, phishers, and scammers. Notably, the dynamic screening system allows for the removal of deposits later identified as malicious, enhancing user security.
These privacy pools are non-custodial, meaning users maintain full control over their funds at all times. Even rejected deposits can be redirected back to the original addresses if needed.
Currently, the deposit limits range from 0.1 ETH to 1 ETH, with plans to adjust these limits following the initial testing period.
In the words of Oxbow, “This is only the beginning. The road to making privacy normal again is long and exciting, and we can’t do it alone!” The sentiment resonates with many in the community.
