0xbow’s ‘Privacy Pools’ Debut On Ethereum, Providing Legal On-Chain Privacy
In Brief
0xbow has launched the Privacy Pools on the Ethereum mainnet, enabling ETH holders to conduct private transactions while ensuring that their funds remain unlinked to illicit activities.
Blockchain infrastructure provider focused on privacy, 0xbow announced the launch of Privacy Pools on the Ethereum mainnet. This innovation enables ETH users to conduct private transactions while ensuring that their funds remain unlinked to illicit activities.
Privacy Pools leverage zero-knowledge proofs—a cryptographic method that allows one party to prove knowledge of certain information without revealing the information itself. This ensures that ERC-20 token transfers remain confidential. A crucial element of this system is the Association Set Provider (ASP), which verifies deposits and filters out suspicious or tainted funds. By doing so, Privacy Pools prevent legitimate assets from being mixed with those linked to illicit activities, balancing user privacy with regulatory compliance.
The concept behind Privacy Pools is rooted in research co-authored by Ethereum co-founder Vitalik Buterin in 2023. Buterin has publicly endorsed the project and was among the first users to deposit funds into the system following its launch.
ETH holders can visit the project’s website to deposit up to 1 ETH. If their funds pass a wallet screening process, they will be eligible for private withdrawals. In cases where 0xbow does not approve the deposit, users can still retrieve their funds by withdrawing them back to the original wallet. This ensures that Privacy Pools remain a non-custodial system, meaning users retain full control over their assets at all times.
During the initial rollout, deposit limits are set between 0.1 ETH (minimum) and 1 ETH (maximum). These limits will be gradually increased as the technology undergoes further testing and refinement. A notable feature enhancing the user experience is the ability to make partial withdrawals—any remaining ETH stays within the privacy pool and can be used later without needing to redeposit.
Another key usability improvement is that users no longer need to save a separate note for each transaction. Instead, all Privacy Pools accounts can be accessed using a single private seed phrase. However, just like a regular cryptocurrency seed phrase, this must be stored securely; if compromised, malicious actors could potentially gain control over the associated funds.
How To Get Started With Privacy Pools
In order to get started with Privacy Pools, users should ensure they have the necessary tools and funds for a seamless experience. A Web3-enabled wallet, such as MetaMask, Rabby, or Phantom, is required to interact with the platform. The wallet must be connected to a supported network, which currently includes Ethereum Mainnet and Gnosis. Additionally, users should have enough cryptocurrency—such as ETH or the network’s native token—to cover gas fees. For optimal performance, it is recommended to access Privacy Pools using a compatible browser like Chrome, Firefox, or Brave.
Users should then navigate to the official Privacy Pools decentralised application (dApp) to access Privacy Pools and verify they are on the correct URL to avoid phishing attempts. Once there, they can connect their wallet by selecting “Connect Wallet” and granting the necessary permissions for the dApp to interact with their Web3 wallet.
The first step after connecting a wallet is to create an account. On the landing page, users should click “Create Account” and securely store their keys. These keys are essential for interacting with Privacy Pools, and 0xbow cannot recover them if lost. It is important to note that when creating a 0xbow wallet, it should only be used for Privacy Pools transactions. Under no circumstances should users enter their primary wallet’s seed phrase into Privacy Pools, as doing so could result in a total loss of funds.
Once the account is created, users can proceed with making a deposit. This process begins by navigating to the “Deposit” section of the Privacy Pools interface. They must enter the desired deposit amount and confirm that their wallet has sufficient funds. If depositing ERC-20 tokens, the user may need to approve the Privacy Pools contract to access their tokens, which requires confirming a prompt in their wallet. After approval, they can finalize the deposit by clicking “Deposit,” signing the transaction, and paying the required gas fee. Once submitted, the transaction must be confirmed on-chain. At this stage, the 0xbow Association Set Provider (ASP) will review the deposit to ensure the funds do not originate from illicit sources. If the deposit is approved, it becomes part of the Privacy Pools smart contract, allowing the user to participate in the anonymity set.
In order to withdraw funds, users must navigate to the “Withdraw” section of the Privacy Pools interface. They will need to specify the recipient wallet address, which can be any address—including a fresh one for added privacy. The withdrawal process requires a zero-knowledge proof, which is generated automatically within the dApp. Users must then confirm the transaction in their wallet and wait for it to be processed on-chain. Once the transaction is successfully mined, the withdrawn funds will appear in the designated recipient address.
Disclaimer
In line with the Trust Project guidelines, please note that the information provided on this page is not intended to be and should not be interpreted as legal, tax, investment, financial, or any other form of advice. It is important to only invest what you can afford to lose and to seek independent financial advice if you have any doubts. For further information, we suggest referring to the terms and conditions as well as the help and support pages provided by the issuer or advertiser. MetaversePost is committed to accurate, unbiased reporting, but market conditions are subject to change without notice.
About The Author
Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
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Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
