News

Update On zkSNACKs’ Blacklisting

Two weeks ago, zkSNACKs announced it is going to refuse certain UTXOs from registering to coinjoins coordinated by the company. zkSNACKs runs the default coordinator of Wasabi Wallet, the most popular Bitcoin privacy solution, as well as finances most of its development. Although we will not share the legal and regulatory details of the matter, we will address the most frequently raised concerns.

Update On zkSNACKs’ Blacklisting

We are fully aware of the gravity of our actions and had been even before the decision was made. By exploiting the only architectural flaw of Wasabi Wallet’s non-anonymously run coordinator: lack of censorship resistance; we broke one of the largest taboos of Bitcoin: blacklisting, to achieve something greater: survival of the best Bitcoin privacy technology. In doing this, we are giving Bitcoin’s anonymity a chance to thrive. The alternative, discontinuing zkSNACKs would have set back Bitcoin privacy for decades. Blacklisting by the default coordinator, while undesirable, is a small price to pay for the future of Bitcoin’s privacy. We even welcome the community outrage as it would be disappointing if there weren’t any; however, we want to clear up some of the speculation.

First, no, it wasn’t because “we want to ban the Russians” Come on, guys

Second, it’s understood that a private company has the right to choose its customers and that the users have the right to complain. Thus, everything is as it should be. Although we would like to serve every single individual in this world, that cypherpunk utopia is not yet here. Most people do not understand Austrian Economics and libertarian values. In order to ensure the survival of the project, we can act in a way that society allows us to do, even if we are not philosophically aligned with that.

Update On zkSNACKs’ Blacklisting

About going anonymous: at this point, it is impossible. Aside from feasibility, it’s also questionable if it’d be a good idea. As a legal entity, we can hire developers on top of their fields ensuring rapid improvements to Bitcoin privacy.

One of the owners of zkSNACKs Ltd., Bálint Harmat said the decision to blacklist was done proactively. While it is correct that there’s no legislation that specifically says coinjoin coordinators must blacklist their customers’ UTXOs, the challenges encountered operating the business in even the most liberal jurisdictions are numerous and multiplying.

Wasabi Wallet is making Bitcoin anonymous and most people are afraid of the idea of anonymous money. They don’t care that it existed for thousands of years before the last century, nor do they understand the gravity of the fact that fungibility is an essential property of good money. Ignorance of first principles has resulted in unwanted media attention and claims of money laundering that we are obviously not trying to enable. Such claims by mainstream media have travelled far and ultimately led to legal challenges, which forced the company to choose between discontinuing its operations or introducing blacklisting so that the coinjoins can continue.

Without the zkSNACKs company, it would be more difficult

If not impossible, to continue funding the developers working on Wasabi 2.0. So after researching the options and a lot of thinking and debating, zkSNACKs Ltd, the company sponsoring the development of Wasabi Wallet, announced that the default coinjoin coordinator will start blacklisting certain unspent transaction outputs (UTXOs.)

The zkSNACKs coordinator having a blacklist does not mean Wasabi Wallet monitors or collects user data. Our architecture is specifically designed to limit the power of what we can do. We still cannot breach our users’ privacy even if we wanted to. For example, all communication still goes through Tor, so the company has no information about coinjoin participants’ identity.

Any user of the open-source non-custodial Wasabi Wallet can still send and receive normally

Update On zkSNACKs’ Blacklisting

Finally, on the claims about the death of the project: we expected that after the announcement the liquidity of coinjoins would take a severe hit. Surprisingly, the opposite happened. The volume of new bitcoins being put into Wasabi coinjoins has increased 3 fold compared to pre-announcement levels, and it’s still growing. The theory put forward is based on the fact that the largest deterrence from coinjoining was the fear that users’ coins may be worth less after the coinjoin process due to their “proximity” to perceived “dirty” coins. So the growth could be explained by Wasabi coinjoins being now seen as a non-risky activity to participate in. Whatever may be the cause we are happy to see Bitcoin’s privacy improve.

To conclude, after the past 2 years of research and development, we are convinced that Wasabi 2.0 is a revolutionary improvement to Bitcoin’s fungibility. Our ultimate goal is to bring privacy to Bitcoin users and blacklisting was a necessary move, enabling us to continue to do so.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join CoinCu Telegram to keep track of news: https://t.me/coincunews

Follow CoinCu Youtube Channel | Follow CoinCu Facebook page

Annie

CoinCu News

Annie

Championing positive change through finance, I've dedicated over eight years to sustainability and environmental journalism. My passion lies in uncovering companies that make a real difference in the world and guiding investors towards them. My expertise lies in navigating the world of sustainable investing, analyzing ESG (Environmental, Social, and Governance) criteria, and exploring the exciting field of impact investing. "Invest in a better future," I often say. That's the driving force behind my work at Coincu – to empower readers with knowledge and insights to make investment decisions that create a positive impact.

Recent Posts

Trump Media Company Is Pushing New Venture For Crypto Service

With the platform facing a cracked whip, Trump Media company is expanding into new business…

24 minutes ago

Crypto Advisory Council Now A White House Position Attracting Leaders

Major crypto firms, including Ripple, Kraken, and Circle, are competing for spots on President-elect Donald…

48 minutes ago

Analyst Sounds Major Breakout Alert Amid Shiba Inu, WallitIQ, And Dogecoin Price Recoveries

Analysts highlight a breakout alert as Shiba Inu (SHIB), and Dogecoin show signs of recovery…

1 hour ago

SEC Chair Gary Gensler Will Lose Power From January 20

SEC Chair Gary Gensler will step down on January 20, 2025, coinciding with President-elect Donald…

1 hour ago

MicroStrategy Convertible Notes Now Out of Stock With $3B Raised

The MicroStrategy convertible notes offering, initially set at $1.75 billion, was increased to $2.6 billion…

2 hours ago

Qubetics, Cosmos, and Chainlink: Why These Cryptos Are Your Best Bet for November 2024

Discover why Qubetics, Cosmos, and Chainlink are the best cryptos to buy in November 2024.…

5 hours ago

This website uses cookies.