February 5, 2023

Ethereum Founder Buterin Considers Creating a More Closed Transaction System

Ethereum co-founder Vitalik Buterin proposed a new system that will allow blockchain users to generate masked addresses and receive funds privately on the network.

The new system could provide moreprivacy of user actions, ranging from monetary and financial transactions to the transfer of non-playable tokens, allowing users to create "hidden addresses" on which they can conduct private transactions using a special code.

Buterin's proposal comes at a time when regulators have tightened control over hidden transactions on various blockchain-based platforms, including the world's most used Ethereum network.

Tornado Cash, a popular cryptocurrency service that allows users to mask their transactions on ethereum, was sanctioned by the US Treasury Department in August after North Korean hackers used it to launder illegal proceeds.

“In practice, the use of the entire setEthereum applications involve making a significant part of your life public for anyone to see and analyze. Improving this state of affairs is an important issue, and it is widely recognized.”

Ethereum is one of the largest public blockchainswithout the right to access, where transaction data is available to anyone for tracking and analysis. Blockchain forensics companies can identify the owners of certain wallet addresses based on this data. Financial regulators and law enforcement can use blockchain analytics to find hackers and illegal financial transactions.

Ethereum developers express concerns aboutabout regulatory surveillance. The protocol for mixing cryptocurrency transactions has been sanctioned. The developer was suspected of being involved in hiding criminal financial flows and facilitating money laundering using this protocol.