0xbow's Ethereum Privacy Pools Surpass 200 Deposits as User Interest Grows

0xbow's Ethereum Privacy Pools Reach Over 200 Deposits Amid Growing User Interest

The system uses zero-knowledge proofs to ensure privacy and compliance by checking for illicit funds.

Author: Omkar Godbole | Edited by: Stephen Alpher Updated: April 3, 2025, 7:44 PM Published: April 3, 2025, 12:02 PM

What you need to know:

• New privacy tools for Ethereum like Oxbow add transactions.
• Within three days of launch, privacy pools processed 238 transactions totaling 67.49 ETH.
• The system uses zero-knowledge proofs to ensure privacy and compliance by checking for illicit funds.

“Tornado [Cash] is dead, but privacy is not going away,” an Ethereum enthusiast noted on X after Oxbow’s April 1 launch of Ethereum privacy tools that aim to provide anonymity on the blockchain while separating it from illicit funds.

This sentiment is reflected in the early adoption of privacy pools, which processed 238 deposit transactions totaling 67.49 ETH in the first three days. The new tool has received the endorsement of Ethereum founder Vitalik Buterin, who was one of the first to deposit ETH.

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These privacy pools use zero-knowledge proofs and commitment schemes to facilitate deposits of ether and subsequent withdrawals, either partially or completely, by breaking the link between deposits and withdrawal addresses. Think of it as a specialized bank account for transferring money while hiding your identity or the amount of your funds.

The architecture includes a contract layer for asset management, a zero-knowledge layer to ensure privacy, and an association set provider layer that ensures compliance by validating assets.

The three layers work together to maintain privacy while checking transactions for links to illegitimate actors such as hackers, phishers, and fraudsters. The check is dynamic: a deposit may be accepted, but later identified as malicious and removed.

Privacy pools do not store funds, which ensures users have full control over their assets and allows even rejected deposits to be returned to their original addresses.

Currently, deposit limits are set to range from 0.1 ETH to 1 ETH, with a promise to increase them after the initial battle testing period.

“This is just the beginning. The road to restoring privacy as the norm is long and exciting, and we can't do it alone!” 0xbow said on X.

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