The co-authorship of ‘Privacy Pools,’ an alternative to Tornado Cash, by Ethereum’s Vitalik Buterin has sparked bullish sentiment not only for ETH but also for ADA (Cardano) and BTCS (Bitcoin Spark). Emanating from Ethereum’s transparency, this development in the crypto arena promises enhanced privacy and security, breaking the link between transaction history and user wallets. Privacy Pools will potentially impact the value and adoption of BTCS, ETH, and ADA.
Who is Vitalik Buterin?
Vitalik Buterin is a prominent figure in cryptocurrency and blockchain technology circles. He is a Russian-Canadian programmer and entrepreneur best known for co-founding Ethereum, one of the most significant and influential cryptocurrencies and blockchain platforms. He demonstrated exceptional talent in mathematics and programming from a young age. He dropped out of the University of Waterloo to pursue his interests in blockchain and cryptocurrency.
In late 2013, Vitalik Buterin proposed the concept of Ethereum in a whitepaper, outlining a decentralized platform of smart contracts and dApps. This groundbreaking idea garnered significant attention and support from the crypto community. Ethereum’s public crowdfunding campaign took place in mid-2014 to fund its development. Ethereum went live in 2015 and has since become a major player in the blockchain space, enabling developers to create a wide range of decentralized applications and projects.
Vitalik Buterin’s contributions to the blockchain and cryptocurrency industry have earned him recognition as one of the most influential figures in the space. His work has revolutionized digital finance and paved the way for innovative applications of blockchain technology in various industries beyond finance.
Vitalik Buterin has co-authored a research paper with other contributors, including Ameen Soleimani, Jacob Illum, and researchers from the University of Basel. The research paper explores the concept of Privacy Pools, a protocol that enhances blockchain transaction privacy while considering regulatory compliance. Privacy Pool mixes user transactions to obscure their origins and allows users to generate zero-knowledge proofs when withdrawing funds to ensure compliance without revealing their identity.
What is Tornado Cash?
Tornado Cash is a privacy-focused dApp built on the Ethereum blockchain. It enhances the privacy and anonymity of Ethereum transactions by allowing users to break the link between their wallet addresses and transaction history. Ethereum users can keep transactions more private by depositing their Ether (ETH) into the Tornado Cash smart contract. When they deposit funds, they receive a special, anonymized token, “Tornado Note,” representing their deposit. The Tornado Cash protocol employs a “mixing” process to anonymize the funds. Users can select the desired anonymity set during the mixing process, determining the number of other deposits their funds will be mixed with. A larger anonymity set generally results in greater privacy but can also require more gas fees. After mixing their funds, users can withdraw them from the Tornado Cash smart contract. When withdrawing, they receive a different set of ETH than what they initially deposited, making it difficult to trace the origin of the funds. The withdrawn funds appear to come from a different address.
Bitcoin Spark (BTCS)
Bitcoin Spark is a futuristic blockchain project deploying an innovative Proof of Process (PoP) consensus mechanism. The project addresses the limitations of established cryptocurrencies like Bitcoin and Ethereum by focusing on processing power, speed, scalability, and ambitious decentralized applications.
The Bitcoin Spark application plays a fundamental role in the BTCS network, serving as a ticket for users to interact with BTCS’ features and capabilities. The application can help users execute various functions, including mining, rewards distribution, and rent processing power. This application runs virtually on many operating systems, making it accessible to all users. The application provides a unique reward distribution approach. Rewards are influenced by the user’s stake and the work done for those who rent computing power. This approach prioritizes revenue-generating products, emphasizing the work done over the size of the stake to incentivize users to secure and contribute to its functionality.
The BTCS ICO is in phase five at $2.50 per token, accompanied by a 9% bonus. The project’s expected successful launch will see early holders realize an ROI of 436%
Cardano (ADA)
Cardano, a blockchain research-driven platform co-founded by Charles Hoskinson, one of Ethereum’s co-founders, could potentially benefit from the concept of “Privacy Pools.” Cardano focuses on secure and scalable infrastructure for dApp development and smart contracts.
Further information on Bitcoin Spark and ICO here:
Website: https://bitcoinspark.org/
