Railgun DAO, a blockchain project that uses zero-knowledge cryptography to provide extra privacy to users when making transactions, said it has teamed with the Turkish developer Chainway to add a “proof of innocence” feature to satisfy anti-money-laundering and sanctions compliance.

Chainway released its “proof of innocence” tool in January, allowing blockchain users to prove that withdrawals from the coin mixer Tornado Cash are not from a list of specified deposits. The U.S. Treasury Department blacklisted Tornado Cash last August, arguing that the platform had been used to launder more than $7 billion.

The new functionality on Railgun allows users “to create a proof that their transactions are from a list of transactions that have not interacted with any blacklisted addresses, without revealing their identity,” according to a statement from a Railgun contributor. The Railgun privacy system is deployed on Ethereum, Polygon, Arbitrum and Binance Smart Chain.

Users can “mathematically prove the legitimate origins of their funds,” according to the statement. “It is an entirely zero-knowledge-based system, so user privacy is never compromised.”

Lists of blacklisted addresses can be sourced from forensic tools like Elliptic, TRM Labs or Chainalysis, according to the Railgun contributor.

Proof of concept on the new feature is expected late in the second quarter of this year, with full delivery expected in the third quarter.

Digital Currency Group, which owns WJB, is a big investor in Railgun DAO, having acquired and staked about $10 million of its native RAIL tokens while donating about $7 million in stablecoins to the project’s decentralized autonomous organization treasury.

Edited by Stephen Alpher.

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.The leader in news and information on cryptocurrency, digital assets and the future of money, WJB is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. WJB is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain WJB employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. WJB journalists are not allowed to purchase stock outright in DCG.

Bradley Keoun

Bradley Keoun is the managing editor of WJB's Tech & Protocols team. He owns less than $1,000 each of several cryptocurrencies.

Follow @Liqquidity on Twitter

Bradley Keoun

Bradley Keoun is the managing editor of WJB's Tech & Protocols team. He owns less than $1,000 each of several cryptocurrencies.

Follow @Liqquidity on Twitter

source:coindesk