Ethereum premieres privacy system, changes the rules of the game?

On March 31, 2025, it was launched on the main network of Ethereum (ETH) Privacy Pools, a tool developed by 0xbow.io, an organization focused on the development of decentralized finance (DEFI) for this ecosystem.

That protocol, even in the test stage, comes with the promise of Offer privacy in the chain Without sacrificing regulatory compliance, a balance that has been elusive for previous solutions. Privacy Pools is a project that takes inspiration from an investigation article of 2023 co -written by Vitalik Buterin, co -founder of Ethereum, and other experts.

After the announcement of the implementation of Privacy Pools, Bugerin himself made a 1 eth deposit In this decentralized platform (DAPP), demonstrating its support for the project.

What is privacy pools and what is it for?

According to its documents, Imprcy Pools, which does not require a KYC verification, is a protocol based on intelligent contracts that would allow users to perform private transactions in Ethereum, using zero knowledge tests (ZK, zero-knowledge proofs). ZK technology facilitates the execution of operations hiding sensitive data, such as the identity or amount of the transaction.

In simple terms, this tool allows hiding the monitoring of user funds, breaking the public trail: no one can easily connect the ETH deposited with the retreat, unlike a direct transfer between Wallets.

Privacy Pools intends offers users the possibility of hide the history of your transactionssomething essential for those who value confidentiality and financial privacy.

According to the Ethereum developer who calls himself «zak.eth» and who is also co -founder of 0xbow.io, Privacy Pools would be compatible with regulatory and regulatory demands That international governments and organizations impose on platforms that operate with cryptocurrencies, especially with regard to the prevention of illegal activities such as money laundering, terrorist financing or the use of stolen funds.

This does not mean that Pivacy Pools complies with a specific list of predefined laws, since regulations vary according to the country and there is no unified global standard, but would be designed to mitigate the risks that regulators usually concern the regulators Avoid the mixture of legitimate funds with those from illegal activities, such as hackeos or scams.

While cryptootics tested this dApp, The minimum amount to send funds is 0.1 ethwhich currently equals approximately $ 200, a threshold that can be high for new users or those who only want to experiment with the system, especially in an early adoption context. It is also possible to send tokens of the ERC-20 standard. The maximum amount per operation is 1 eth.

And how does I work Pools in Ethereum?

For the operation of Privacy Pools it is necessary to have a compatible Wallet, such as Metamask or Walletconnet, connected to the Ethereum main network or on the second layer network (L2) Gnosis, where the protocol operates. In addition, enough funds must be had in Ether or Tokens ERC-20, not only to cover the minimum deposit, but also to withstand gas rates. This dapp Operates from a navigator like Chrome, Firefox Brave.

Once the deposit is done, the Wallet requests to sign the operation and pay the gas rates. After confirmation in the chain, Privacy Pools introduces a figure in its operation with the use of «Association Set Provider» (ASP, or in Spanish association set), a component that Evaluate the funds before integrating them into the system.

Unlike others dApps As Tornado Cash, who faced sanctions for his inability to filter suspicious funds, if the funds analyzed by ASPs are not linked to illegal activities, they are integrated into the anonymity as a whole of the intelligent contract. This process can be tedious, since that evaluation can take up to seven days.

Otherwise, the user could recover their foundes through the called function «ragequit»maintaining control of the assets at all times, as they explain the documents of Privacy Pools. The retirement follows an equally structured process.

Not everything is rose color

An aspect that generates questions is the opacity about ASP operators. In the official pages of the protocol it is explained that: “ASP is a layer of crucial compliance that control what deposits can be removed Privately of Privacy Pools. It maintains a set of approved labels and provides the necessary data for the cryptographic tag tests, serving as a bridge between privacy and regulatory requirements ”.

In response to a question in a thread of X about who manages the ASP, Zak.eth pointed out: «I don’t want to talk out of place»labeling in that same comment to the CEO of Oxbow.io (in X «Nattyfried») and ensuring that he and «others will soon have official communications about this.» Therefore, it left concrete details that could influence the perception of transparency of the project.

Another disadvantage of the ASP evaluation process is that, according to information shared by Vitalik Butein, can take up to 7 days. During this time, the funds remain in the system, but are not available for private withdrawals until they are approved and integrated into the anonymity set; If they do not pass the verification, the user can recover them through «ragequit». This period, which seeks to guarantee regulatory compliance, introduces a wait that could vary according to the complexity of the analysis.

On the other hand, among the possible advantages of Privacy Pools, Zak.eth highlights that it opens a range of new possibilities for applications, as anonymous votes in DAO, verifiable donations or airdrops privatewhich could promote its adoption in the Ethereum ecosystem.