Odaily Planet Daily News Vitalik Buterin, the co-founder of Ethereum, co-authored a research paper on privacy protocols, entitled "Blockchain Privacy and Regulatory Compliance: Towards a Practical Equilibrium (Blockchain Privacy and Regulatory Compliance: Towards actual balance)".
This paper examines a new smart contract-based privacy-enhancing protocol, Privacy Pools, discusses its strengths and weaknesses, and shows how it can be used to create a separating balance between honest and dishonest users. The protocol aims to use zero-knowledge proofs to verify the legitimacy of user funds without revealing their full transaction history; balancing privacy and regulatory requirements while filtering out funds associated with criminal activity.