Thanks for the info, something im going to look into.
On Sat, Sep 10, 2022, 5:56 AM none <dmarc-noreply@xxxxxxxxxxxxx> wrote:
Hello,
First some background : unlike wiring funds from a bank account, when you
send money using Bitcoin or Ethereum, the recipient can through your
sending address being revealed, knows how much you do own and earn and
spent. I'm meaning complete past and future financial history.
Tornado Cash as a privacy pool works though severing the links between a
sender and a receiver thus making the funds untraceable. According to
Chainalysis, ~40% of the funds transiting through Tornado Cash are directly
linked to money laundering. While a large poriton this is still not the
majority. A comparison can be done with the global banning of eDonkey2000
decades ago along the use of Bittorrent in some countries, in the name it
was used only for illegal file sharing or
https://en.wikipedia.org/wiki/MGM_Studios,_Inc._v._Grokster,_Ltd..
Unlike web services, Tornado Cash uses smart contracts which are executed
by miners when processing the transactions of the blockchain. In the case
of Tornado Cash, such programs are made immutable which means even Tornado
Cash as entity has no way to update or control the code and thus cannot
control the funds.
So, when sanctioning Tornado Cash, ofac forbid any US person or peoples
interacting with US based persons to use or allow to use to the contracts
since they can't be removed. And by banning any interactions with the
contracts, us persons are not legally allowed to withdraw the funds they
deposited or received on the contracts just before the ban. Which means
such money is legally trapped.
Such move nerveless, had huge repercussions : first as the founders live
in the us, they are de facto not legally allowed to talk about the protocol
which is why the official Twitter account went silent
https://twitter.com/tornadocash. And which also means exchanges are
threatening to delist the Torn token of the dao because of the lacks of
updates from the Twitter account. As appointed mods lived in the us, they
had to abandon control over the dao, thus greatly restricting actions on
the non privacy related parts of the protocol :
https://cointelegraph.com/news/tornado-cash-community-fund-multi-signature-wallet-disbands-amid-sanctions
.
And then, still on the side of speech, Discord.com account was deleted
which allowed a scammer to replace it for robbing user's funds and
snapshot.org which allows to attach text to on-chain vote for the dao
also banned access to the ens. GitHub deleted the source code along the
accounts of the biggest code contributors to the project
https://twitter.com/semenov_roman_/status/1556717890308653059.
And continuing on this, domain names like https://tornado.cash were sized
along the https//torn.community discussion forum which was open to all
users. This prevents small users to use the front-end/protocol while still
allowing bad actors with the know how for handling bytes manually to use
the underlying smart contracts.
The idea of cryptocurrency as being decentralized took a hit : rpc
endpoints like Infura are blocking any interactions and those who refused
got their Amazon ec3 or Microsoft vms sized, which means you not only need
your own node but need your own OpenEthereum fatdb enabled node using 12Tib
cutting edge single level cell based ssd (or even ram) at your own home in
order to fetch the on-chain data required for computing the zsNark proof
which used to be possible through a mobile phone. Some mining pools are
refusing to include the transactions in blocks
https://forkast.news/headlines/ethermine-stops-tornado-cash-transactions/.
The issue is expected to become even worst with the switch to staking
because as part of the Merge upgrade as filling blocks would be handed over
to block producers which are typically cex
https://rekt.news/winds-of-change/ ;(thus I disagree for Alexey Pertsev),
which means transactions might ends up completely censored at the Ethereum
level.
Not to say, but as a precedent, with Bitcoin refusing hard forks and it's
mining being heavily centralized, there will one day be more than 50% of
the hasrate coming from regulated pools refusing to mine on blocks
implementing the next halving in order to have more than 21 millions
Bitcoins for helping fund growth. And hence there will be lot of more than
21 millions Bitcoins. Although the average bitcoiner technically disagree
of such variant of the 51% attack but without giving proper argumentation.
