Zac Williamson, CEO of Aztec Network Ethereum Privacy Layer discusses what the future of Web3 privacy might look like after the widely criticized U.S. government right Sanctions from crypto mixer Tornado Cash.
Williamson believes that “the network of the future can meet the goals of regulators while protecting user privacy, but not with existing regulatory structures.” He said that regulation Institutions went the wrong way in banning Tornado Cash.
New Financial Revival
thinks the government will consider issuing the base currency directly onto a network like Ethereum, “Williamson outlined in a lengthy Twitter thread.
and low barriers to entry from the open web, we will see the dawn of a new financial renaissance,” he added. . Tornado Cash or clones will still be used.
“The entity in question will provide an outlet for bad actors who do the minimum required for reasonable denial,” the CEO said.
In light of TornadoCash ban , I want to share some thoughts on the future of the private web with you all.
Despite the current darkness, there are reasons to be optimistic about the future of web3.
Short 🧵 on why…
– Zac Williamson (@Zac_Aztec) 2022 August 16
Zach Williamson is a cryptographer. He claims that “many projects in this area build on my research and draw on open source cryptographic algorithms I wrote.”
In 2017, he co-founded the Aztec Network, This is a second layer privacy protocol on Ethereum. The platform allows users to access a range of services in DeFi, it says, “to avoid snooping while maintaining auditability and compliance.”
Williamson: “There are One place for regulation in Web3′
Williamson said that in the near future, the privacy web may be divided into four: private by default; fully decentralized; user-side compliance Sexuality – users can selectively prove part of their identity (not on sanctions list); and be open and programmable.
“Programmable privacy will create exponential growth opportunities for cryptocurrencies ,” he explained. “Once a user can link a cryptographic identity to a cryptocurrency account, off-chain assets can be issued and traded on-chain without an escrow intermediary. “
He sees that the need for user privacy and the “openness” of decentralized protocols will further lead to two distinct areas:
” “Regulatory Networks” – Apps and Crypto Assets” are in the spirit of existing regulations, but regulatory changes are required to comply with the letter. “
Then the “Dark Web” – Apps and Digital Currencies” has no built-in compliance at the protocol level. “
“Continuing on the path set by the Tornado Cash ban will completely prevent the establishment of compliant networks as legitimate uses of these networks disappear due to fear and uncertainty,” He warned, adding:
“Web3 has a place for regulation. It’s not at the network level. It’s at the application level; companies and entities that leverage Web3 to provide services to users and businesses. Such as cryptocurrency on/off ramps and custodial wallets. “
Tornado “Self-Injury” Cash Sanctions
In short, Web3 is a decentralized internet concept driven by blockchain technology and token-based economic technology. Non-fungible encrypted tokens (NFTs) are expected to be Web3 plays a key role as a medium of exchange.
The U.S. Treasury Department approved Tornado Cash on August 8, accusing the privacy tool of laundering $7 billion worth of crypto assets since 2019 .These measures mean that all U.S. citizens and entities are banned from using Mixer.
Sanctions defy Mixer’s promise in April to block addresses from being blocked by U.S. foreign assets Blacklisted by the Office of Control.
“Tornado Cash ban would be seen as an act of self-harm, limiting America’s access to the resulting wealth and job creation in a revolutionary industry,” William Musson said.
While a decentralized encrypted network reduces the power of the state to enforce the rules, he said that “the state can take most of its power back for good – trusting actors in Web3 A new regulatory framework will be created, acknowledging that the status quo has changed. “
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