Episode 98

Working on Privacy


September 4th, 2023

1 hr 20 mins 40 secs

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About this Episode



Drivechain Drama


  • Arthur Hayes is back with a macro article on U.S. Federal Reserve policy errors


  • The actual U.S. Justice Department Tornado Cash indictment is amazing, it explains how ETH sort of works (WARNING USG PDF)
    • Roman and co raised money
      • maintained and hosted the TC UI
      • because the UI increases usage/anon set, its not just a small thing according to JD
      • TC had a relayer model to allow additoinal privacy and relayers earn fees
      • In August 2019 Roman and Co had control of the TC smart contract but removed their keys in May 2020
      • THe DAO they created in December 2020 created the TORN token and gave 30% to the TC founders and investors
      • The DAO token incentivized relayers to hold at least 300 tokens to get preferential access to fees
      • By blocking OFAC addresses from the UI they demonstrated they could have been compliant the entire time, thus were culpable (they were either way since they controlled the UI)
      • There's also a lot of internal communication about how they knew this would not be effective KYC/AML etc
  • The indicment is still broad and bad...were they really opperating an unlicensed money transmitter? More like they were charging people to walk through a nice lobby to the MT rather than the complicated maze in the back

Tor is adopting Proof of Work

As an anti-DOS, denial of service feature, they have thought a long time about solutions to spam and are now using a solution shared by bitcoin


Turns out they were overestimating things by a noteable amount. They have updated their numbers downward.

Not only does Iceland run almost entirely on renewable energy, it has historically operated at a surplus. Bitcoin miners and other digital asset generators have been buying up that extra energy to power data centers across the island nation. But some environmentalists worry the exponential electricity demands of the controversial asset class will inevitably result in more power plants, which could damage Icelandโ€™s unique ecosystems.

Bitcoin Education


Thank you Boosters

Value for Value

Sponsors and Acknowledgements

Music by Lesfm from Pixabay
Self Hosted Show courtesy of Jupiter Broadcasting