Tuesday, August 9, 2022

People are Making the Wrong Generalizations Surrounding Tornado Cash


full image - Repost: People are Making the Wrong Generalizations Surrounding Tornado Cash (from Reddit.com, People are Making the Wrong Generalizations Surrounding Tornado Cash)
It's not a generic criminalization of all things "privacy" and "anonymity." Encryption has a well established legal foothold across most of the world. Tor and I2P are legal outside of a handful of repressive regimes.Tornado Cash combines your personal funds with others inside a common pool. At the end, you'll be in possession of units of ETH which came directly from others in that pool. It has transparent deposits from entities conspicuously known to be criminals. And worst of all - optional participation means that you actively choose to launder your personal funds with known criminals.From the govt point of view, this is no different than meeting up with a group of gangsters and swapping $100 bills. It's immaterial whether you coordinated this personally, or with a bit of computer code.This stands in stark contrast to Monero. You never send funds to a common pool. Your funds always stay segregated. Ring decoys have no clear public association with anyone. These protections are enforced at the network level (default for all transactions). This is provable at the protocol level, and for individual wallets.In fact it's remarkable: Monero is 5 years older than Tornado; the premier coin of dark webs; preferred for ransomware; larger and more prevalent ... Yet Tornado received an outright criminalization by the fedbois ... Whereas Monero remains decidedly legal for personal possession/use, even in the handful of nations that singled out XMR for exchange delisting (a separate discussion).The govt is clearly indicating that it's not merely "anonymity" or "privacy" being criminally targeted. Rather, they're indicating that the manner in which you go about it (aka the protocol itself), matters.


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