4min chapter

The Blockchain Socialist cover image

OTNS: DAOs and Decentralized Mafias

The Blockchain Socialist

CHAPTER

The Privacy Pools and the Tornado Cache

The way that tornado cache and privacy pools work is everyone puts in the same amount of ETH and then gets mixed and then is withdrawn out. The St. Louis Federal Reserve has built a compliance tool that allows you to provide receipts to some regulated financial institution that helps them actually connect your withdrawal to your deposit. And so they said, look, if you're willing to reveal your transaction history to a regulated financial institution, we're willing to let you use this thing.

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