On 31 March, the new semi-licensed privacy tool, developed by 0xbow.io, was launched at the Ether Workshop, allowing users to conduct private transactions while at the same time proving that their funds were not linked to illegal activities. The project was supported by Vitalik Buterin, a co-founder of the Ether Workshop, and he himself was one of the first users to deposit on the platform.
Privacy Pools uses a “connected pool” mechanism to process a volume of transactions into an anonymous pool and to ensure through screening tests that these transactions are not linked to illicit offenders such as hackers, cyber-fishers and fraudsters. This dynamic pool means that even if a transaction is found to involve illegal activities, it can be removed from the pool without affecting other deposits.