Searching for Alpha: Privacy Pools

Blockchain transactions are transparent in nature, meaning transaction dependencies and asset flows would be publicly recorded on-chain and accessible by anyone. This design might be problematic for privacy-focused users, especially in the Web3 era, where many social platforms establish a linkage between on-chain accounts and account owners’ identities. 

Various privacy-enhancing protocols have been developed to tackle this issue. One of the most notable privacy solutions is Tornado Cash. Tornado facilitates the mixing of deposits and enables depositors to withdraw their funds to another address using zero-knowledge proofs (ZKPs).