Catenaa, Friday, April 4, 2025-0xbow has unveiled a new privacy tool, “Privacy Pools,” designed to enhance on-chain privacy while ensuring compliance with regulations.
The tool, which draws from a 2023 research paper co-authored by Ethereum’s Vitalik Buterin, allows users to make private deposits and withdrawals of ERC-20 tokens using zero-knowledge proofs.
Unlike previous privacy solutions, such as Tornado Cash, Privacy Pools incorporates Association Set Providers (ASPs) to screen out illicit funds and prevent illegal transactions from entering the system.
This ensures that users can dissociate from suspicious funds without revealing their original deposits.
The protocol, supported by investors such as Bankless and Public Works, operates across networks like Ethereum and Layer 2 Gnosis. It is designed to enable privacy-conscious individuals and institutions to transact securely while maintaining a transparent and compliant blockchain environment.
The launch marks a significant step in blockchain privacy, building on earlier privacy-enhancing work and offering a solution that balances privacy with the need for regulatory oversight.
0xbow’s creators aim to normalize privacy in blockchain transactions, with further developments expected in the future.
