Together with blockchain veteran Ameen Soleimani, Jacob Illum from Chainanalysis and University of Basel scholars Matthias Nadler and Fabian Schar, Buterin authored paper on privacy game-changer
Per the proposal, Ethereum users can simply publish ZK-proofs to verify that their funds did not come from knowingly unlawful sources of cryptocurrency.To do so, through a cryptography mechanism, the user just needs to proof and encrypt the verified fact of being associated or not with the set of deposits:However, in some implementations, this mechanism can reveal more information about the transactions in question, the authors added.
Also, this instrument would allow honest users to disassociate themselves from third-party deposits they do not agree with or might otherwise prevent them from using their funds in a regulated environment. However, the regulators will still be in charge of creating"black lists" of addresses considered illicit in this or that jurisdiction.
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