Ethereum co-founder Vitalik Buterin transferred $1 million worth of ETH into Railgun’s privacy protocol on Monday, underscoring his ongoing support for privacy-focused platforms. On-chain analytics service Spot On Chain reports that Buterin has transferred 662 ETH, equivalent to $1.91M, to the Railgun protocol over the past 10 months.
Railgun runs on Ethereum and similar blockchain networks, using Zero-Knowledge proofs, specifically zk-SNARKs, to maintain privacy. This technology enables users to engage privately with decentralized finance platforms, concealing details such as the identities of senders and receivers, transaction amounts, and the tokens used from public view.
Each transaction Railgun processes, whether a token swap or a private transfer, boosts privacy by adding randomness to the transaction details. This makes it more difficult to trace funds to their origin or link them to specific individuals.
Moreover, Buterin has described Railgun as a powerful tool for safeguarding users’ privacy. He highlighted that it makes it much more difficult for bad actors to infiltrate the system without compromising the privacy of legal users.
Ethereum Buterin’s transfer is Charity or mystery?
Buterin’s recent transfer remains unexplained, but some speculate it might be related to charitable donations. Known for his philanthropic efforts, Buterin donated over $1 billion in Shiba Inu tokens to the Indian Covid-Crypto Relief Fund in 2021.
Recently, Buterin donated 200 ETH, worth over $500,000, to an Animal Welfare Charity. He said the funds came from selling animal-themed tokens and encouraged future coin issuers to allocate funds directly to charities.
Buterin’s endorsement of Railgun highlights his strong approval of its privacy features. Meanwhile, it has sparked discussions about the broader implications of privacy in blockchain transactions.
Blockchain analysis firm Elliptic previously claimed that the North Korean hacking group Lazarus used Railgun to launder over $60 million in Ethereum stolen in June 2022. However, Railgun denied any connection to Lazarus, calling the accusations unfounded and asserting its design to block sanctioned or malicious users.
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