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138
Posted by2 months ago

Dark day for crypto as Circle blacklisted addresses that have interacted with Tornado Cash contracts. This makes me worried for Djed, if they add any functionality to blacklist addresses it sets a terrible precedent, not just for decentralized assets, but for Cardano and blockchain future as a whole

I'd love to know if anyone behind the scenes has any idea if Djed will have ways to blacklist addresses. If so, it would be our duty as a community to give hard push-back and not support this in any way. We cannot let this happen, and if they do, we should instantly fork it on release without the dystopian feature set and collectively embrace it as the stable coin of choice.
I'm fine with IOG implementing features that allow a token deployer to add functionality to block or reverse transactions, but any project actually using these features in their native assets should be shunned and ridiculed, as it goes straight against the crypto ethos.

86 comments
88% Upvoted
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IMO Anyone should be able to use tornado cash for any reason instead of having to buy Monero etc for privacy.

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And they can, they'll just have to open a proxy wallet and it's done. This adds a bit of extra gas at most, no biggie.

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Disagree. The whole point of blockchain is an open accounting ledger. We all have to play by the same rules. And you may want to hide a transaction for porn or other small vices but if you open that door, then bad actors will stream through it. The problem with the current system is its anonymity for wealthy bad actors and all these tumblers do is the same.

I agree with you in principle, but it requires a maturity humanity has yet to reach as a species.

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On the contrary, I think many are missing the boat on what's going on here. When CH gave his testimony to the Congressional subcommittee, he was presenting to them the idea that crypto, as a whole, was capable of policing itself instead of requiring a nanny overseer from the government, just as banks self-check themselves, etc. The Treasury and IRS have rightful concerns about money laundering and the hiding of illicit gains through platforms such as Tornado.

Shutting off access is the exact self-policing that was discussed and presented to Congress - putting cryptos money where its' mouth is, so to speak (no pun intended). So, the more of this addressing those concerns that takes place, the less likely Draconian government interference will be in the future.

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This is the bread and butter discussion. If you were able to watch the hearing, I think it went really well and CH probably felt really good about it. The reception he received and the input he provided seemed equitable to how the committee felt as well, outside of the one clear dinkus rep who came in, mumbled some general question not really wanting a response, mumbled a statement of opinion, and then left.

I think the recent Blackrock news, for instance, is happening BECAUSE of the confidence in self-regulation and congress' desire to allow that to work first.

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i'd be ok with that if we could get bank accounts that are connected to tax havens frozen as well.

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This is so true and I’m quite surprised at how many folks in the Cardano community don’t seem to “get it” when it comes to regulatory compliance & automated risk management.

Part of me suspects(/hopes) this is one of the many ways in which Cardano can gain acceptance from legacy insidious. I know many community members may disagree but ultimately these kinds of features will drive adoption & acceptance.

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You think Cardano privacy services should have an enshrined back-door and account kill switches for the US government?

It’s one approach, but I’m not sure I agree with Charles on that.

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Op · 2 mo. ago

Sure, which is why I'm cool with the fact that this is implemented into the standard to optionally be used by builders, but at the same time it's also our duty as holders to shun any projects that actually use it and send a signal that we value our sovereignty. I would be pretty upset if I got my wallet blacklisted because I used ErgoMixer at some point.

Not being able to spend (and hide) your money as you see fit defeats the entire point of crypto and decentralization.

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just as banks self-check themselves

Banking is a HIGHLY regulated industry around the whole world, including the USA. And in the few areas with regulation loopholes is where they screw up royally, time and time again.

Shutting off access is the exact self-policing that was discussed and presented to Congress

That ain't no "self-policing", that was Circle, an American LLC, being afraid of the feds coming for them. It ain't self-policing if you only do it after the feds show up.

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As far as I know Djed is completely algorithmic, that means that there are no people controlling it, only smart contracts and algorithms that live on the blockchain (Open source and nobody can tamper with them). Circle is literally a centralized company and therefore it's their right to blacklist anyone they want, all this means is that people will migrate to real, uncensorable defi.

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Cardano works differently.

In other chains you can and usually have a smart contract which you need to interact with every time you move a coin. But with Cardano you usually have native assets which means no smart contract is executed when moving assets.

There is no central 'off' switch to freeze assets.

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Op · 2 mo. ago

That's coming though and the question is which projects are going to implement it.

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· 2 mo. ago · edited 2 mo. ago

Hopefully Cardano doesn't get a button for token creators to arbitrarily freeze other people's funds. Talk about dystopian. Decentralized stablecoins should replace centralized (when they can stop getting hacked), and if blacklisting is absolutely needed, it should be done transparently and not by a central authority

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Don't forget that there are going to be several major stablecoin projects on Cardano, not just Djed. Indigo for example is deploying a suite of stablecoins. Ardana, Liqwid and LiqwidX will also be deploying stablecoins.

The Cardano ecosystem has been in talks with Circle about possibly bringing USDC onto Cardano. One concern they've raised is that because Cardano is so secure and decentralized, Circle isn't able to technically implement this blacklisting of addresses like they can with EVM based blockchains. Cardano may need to be updated to support blacklisting of addresses before the likes of Circle onboard.

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Cardano is a decentralised public blockchain and cryptocurrency project and is fully open source. Cardano is developing a smart contract platform which seeks to deliver more advanced features than any protocol previously developed. It is the first blockchain platform to evolve out of a scientific philosophy and a research-first driven approach. The development team consists of a large global collective of expert engineers and researchers.
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