The fall of the crypto mixer platform, Tornado Cash has shaken up the entire crypto ecosystem. Quite recently, the Dutch government agency responsible for investigating financial crimes said that its officials have arrested a DeFi developer who has been working for the US-sanctioned crypto mixing platform, Tornado Cash. But this mishap might actually hamper the market relevance of Ethereum. Since Tornado Cash existed on the Ethereum blockchain as a smart contract, basically, the ETH blockchain operates as a decentralized database that hosts thousands of nodes spread all across the globe. Now that Tornado Cash is being blacklisted, an important question that begs the attention of the industry is how will this affect the Ethereum network. Currently, there are speculations that Ethereum might even get censored!
Experts have denoted that the answer to the question of whether Ethereum will get censored or not, cannot be answered with a mere yes or no, instead, it requires experts to differentiate the original Ethereum protocol to the services it provides and the applications that are hosted on it. However, Ethereum services can definitely be censored. ETH infrastructure providers like Infura and Alchemy have already been restricted access to data on Tornado Cash smart contracts. The USDC stablecoin provider, Circle has stopped offering services to accounts that interacted with Tornado-linked addresses. But after this incident, netizens have started tweeting and posting that the Ethereum protocol might not be as safe as we thought it was.
It is quite a common fact that there are no guarantees when it comes to privacy in the crypto market, especially with technology advancing so fast. But the privacy of the crypto investors massively depends upon their own research as well. Governments are moving in to ensure that regulations are in place and are consistent with the emerging innovations. As we advance toward the progress of digital currencies, there will be a rise in the number of scams, but we ought to steer clear of these fraud services.
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Disclaimer: Analytics Insight does not provide financial advice or guidance on cryptocurrencies and stocks. Also note that the cryptocurrencies mentioned/listed on the website could potentially be scams, i.e. designed to induce you to invest financial resources that may be lost forever and not be recoverable once investments are made. This article is provided for informational purposes and does not constitute investment advice. You are responsible for conducting your own research (DYOR) before making any investments. Read more about the financial risks involved here.