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🔍Vitalik Co-Authors Paper Proposing Compliant Tornado Cash Successor

The Defiant

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Vitalik Buterin, the co-founder and chief scientist of Ethereum, is among four researchers behind a paper exploring Privacy Pools, a spiritual successor to the sanctioned coin-mixing protocol, Tornado Cash. Unlike its predecessor, Privacy Pools uses zero-knowledge cryptography to prove users are not interacting with sanctioned wallets.

Starknet now ranks as the second-most popular Layer 2 by transaction volume amid a renewed wave of airdrop speculation. The network processed a record-high throughput of 9 transactions per second on Sept. 3.

Coinbase and Aave joined forces to launch a coalition supporting bringing real-world assets on-chain. The organization includes leading RWA protocols Centrifuge and Goldfinch.

And Unstoppable Domains launched an encrypted messaging service for web3 domain name holders. The .eth service is based on the XMTP messaging protocol, making it compatible with a wide variety of other web3 protocols and infrastructure.

✍️ In today’s newsletter:

  • Top crypto researchers propose compliant coin mixer
  • Airdrop speculation drives surge in Starknet activity
  • Coinbase and Aave align on RWA push
  • Unstoppable Domains launches encrypted messaging

📈 Markets in last 24 hrs:

TickerValue24h
BTC$25,784 -0.17%
ETH$1,633 0.15%
S&P 500$4,465 -0.7%
GOLD$1,918 -0.42%
Arch WEB30.72pts +1.06%
FINANCE0.76pts 0.86%
INFRA0.67pts 1.13%
CONSUMER0.85pts 1.64%
Arch WEB3

Learn more about Arch Indices here.

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Privacy

Vitalik Buterin Co-authors Paper Addressing Blockchain Privacy

TLDR Vitalik Buterin, Ethereum's co-founder and chief scientist, co-authored a paper exploring Privacy Pools, a coin mixing protocol allowing users to verify they are not interacting with sanctioned wallets. “The ultimate goal [is] to create privacy-enhancing infrastructure that can be used in a regulated environment," the paper said.

SO WHAT The paper comes one year after the U.S. Treasury Department took the unprecedented action of sanctioning the smart contracts for Tornado Cash, a popular Ethereum-based coin mixing protocol believed to be favorite by North Korean hackers. Privacy Pools seeks to offer transactional privacy for users without them afoul of regulators.

READ MORE: Vitalik Buterin Co-authors Paper Addressing Blockchain Privacy


Layer 2

Starknet Activity Surges On Token Speculation

TLDR Starknet has emerged as Ethereum's second-ranked Layer 2 network by transaction volume behind ZkSync Era. Activity on Starknet spiked amid swirling speculation that an airdrop may soon be imminent, with one of the network's wallet providers recently publishing and then quickly deleting an article discussing the STRK token.

SO WHAT Ethereum's Layer 2 ecosystem is booming, with ZkSync Era, Starknet, and recently, Base, all giving incumbents Arbitrum and Optimism a run for their money. Combined L2 throughput is consistently outpacing the Ethereum mainnet by 400% throughout August.

READ MORE: Starknet Activity Surges On Token Speculation


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Tokenization

Coinbase and Aave Form Coalition to Promote Tokenized Assets

TLDR Top DeFi lending protocol, Aave, and leading U.S.-based centralized exchange, Coinbase, have teamed up to launch the Tokenized Asset Coalition. The organization seeks to promote the adoption of real-world assets on-chain, boasting membership from top RWA protocols.

SO WHAT With yields on the rise in the real-world economy, DeFi devs have been quick to take notice. RWAs are also gaining momentum in web3 as a stable investment product for treasury allocations.

READ MORE: Coinbase and Aave Form Coalition to Promote Tokenized Assets


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Privacy

Unstoppable Domains Launches On-Chain Encrypted Messaging

TLDR Unstoppable Domains, a company providing easily-read NFT-based domain names that can be linked to wallet addresses, has launched an encrypted messaging service for its users.

SO WHAT Unstoppable Messaging uses the Extensible Message Transport Protocol ( XMTP), making it interoperable with other web3 dApps and services. Users can also access their messages from any XMTP-based protocol.

READ MORE: Unstoppable Domains Launches On-Chain Encrypted Messaging


🔎 OUR REPORTERS ARE WATCHING


🌍 ELSEWHERE

  • IMF and regulators set out roadmap to contain crypto risks ( Reuters)
  • $500B Korean Asset Manager Taps Polygon Labs to Develop Tokenized Securities Network ( CoinDesk)
  • Tornado Cash cofounder Roman Storm pleads not guilty to laundering over $1 billion ( Economic Times)