A SUMMARY OF VITALIK’S PRIVACY PAPER

Summary from the TLDR Crypto newsletter

The new privacy paper that came out earlier this week by co-authors Vitalik Buterin and Jacob Illum explores the use of Privacy Pools, a feature allowing users to separate themselves from illicit funds. This is comparable to Tornado Cash, with the added ability to prove that your original deposit came from a whitelisted address. The authors suggest that third-party whitelist providers could supply non-sanctioned or low-risk addresses. However, there are concerns about whether this would meet the Department of Justice's standards for compliance.