US Treasury sanctions on Tornado Cash platform last week cast doubt on the cryptocurrency universe. After all: Can a decentralized application be audited without government or law?
The answer goes beyond “yes” or “no.” As the digital universe is created – as it includes social and legal aspects – sanctions against users are limited to the code and community of that particular protocol.
“Some people in America don’t have access to social media platforms. DeFi such as dYdX“The world’s leading ethereum network derivatives protocol,” says Paulo Camargo of Empiricus Research Group.
Camargo participated in the latest episode of CryptoStorm, along with his teammate Murilo Cortina. Experience About cryptocurrencies. Joined by Vinicius Basan, head of research in the same house, they discuss the week’s hot topics in the universe. Cryptocurrencies.
Press play to watch the full conversation:
US Treasury Audit of Cryptocurrencies: What Is Tornado Money?
After all, what does Tornado Cash do?
This platform uses the information of a single transaction, making it practically impossible to track the money. Generally, users use it to hide resource movements and maintain the confidentiality of their personal information.
However, it can also be used for other purposes such as hiding funds from money laundering and digital crime.
A report by SlowMist, a company specializing in blockchain digital security, found that Tornado Cash received 75% of its revenue from money laundering on the Ethereum network.
However, this data is contradicted by another one: of all resources passing through the site, only 10% are of illegal origin.
And there is doubt
Shortly after the Tornado bans were announced, the platform’s creator was arrested by authorities in the Netherlands, which raised an important question for analysts: should this person be punished?
It’s worth remembering that decentralized application developers leave application code open and available for copying and modification. In other words, anyone can remake the Tornado cache from scratch or upgrade the network.
To find out the answer to this question, listen to the new episode of Cryptostorm, available on Spotify:
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