gm, readers.

At Automata we work on protecting privacy and fairness. And in this newsletter, we find more reasons to talk about it. Explore headlines and catch up on the biggest crypto news in Web3 privacy.

This week:

• EU law authorities highlight challenges posed by privacy coins, Layer-2 networks, and crypto mixers in tracking illicit assets

• Decentralized digital identity enhances privacy and security in Istanbul

• Former Coinbase Communications Head joins Worldcoin to spearhead global expansion and biometric innovation

• Ava protocol raises $10M to develop EigenLayer AVS for private autonomous transactions on Ethereum

Zooming into ZK:

• Privado ID expands privacy-focused self-sovereign identity solutions beyond Polygon network

• Proof of SQL, an open-source ZK-proof, revolutionizes real-time data processing

• zkSync faces criticism over alleged lack of sybil filtering in ZK token airdrop

• zkSync community alarmed by $3.5M gemholic rug-pull scam allegations

• zkSync unveils ZK Nation, a decentralized governance framework for community-led protocol evolution

• Taiko launches permissionless sequencing and proving on Ethereum Layer-2 Mainnet

We dive into the details, so you don’t have to:

Privado ID, formerly Polygon ID, has spun off from Polygon Labs to offer its ZK self-sovereign identity solution beyond the Polygon network. This protocol-agnostic service enables users to control their identities and share only necessary information, enhancing privacy and security. With integration into Consensys' Linea zkEVM blockchain and proof-of-concept tests with major banks, Privado ID aims to support various blockchains while reducing trust and risk mitigation costs.

zkSync's ZK token airdrop has sparked controversy within the crypto community due to allegations of inadequate Sybil filtering. Polygon's Mudit Gupta criticized zkSync for what he deemed as the most "farmed airdrop ever," asserting that the distribution lacked effective anti-bot measures. Despite zkSync listing seven eligibility criteria aimed at preventing Sybil attacks, critics argue these are easily exploitable and insufficiently robust, leading to concerns over the fairness and integrity of the airdrop process.

Nansen clarified its role, stating it provided data on wallet segments but did not perform anti-Sybil checks or advise on token allocations. Meanwhile, zkSync defended its approach, suggesting that stringent Sybil detection methods often exclude genuine users unfairly. As the controversy unfolded, estimates suggested significant quantities of ZK tokens could potentially end up in Sybil wallets, valued at millions of dollars, impacting token prices on the market.

Connect with Automata on both X (Twitter) and Discord.

This newsletter is for informational purposes only. It is not intended to be a substitute for professional financial advice or interpreted as investment advice. Cryptocurrencies are volatile assets and you should always do your own research before making any informed decisions when investing or trading.

gm, readers.

At Automata we work on protecting privacy and fairness. And in this newsletter, we find more reasons to talk about it. Explore headlines and catch up on the biggest crypto news in Web3 privacy.

This week:

• EU law authorities highlight challenges posed by privacy coins, Layer-2 networks, and crypto mixers in tracking illicit assets

• Decentralized digital identity enhances privacy and security in Istanbul

• Former Coinbase Communications Head joins Worldcoin to spearhead global expansion and biometric innovation

• Ava protocol raises $10M to develop EigenLayer AVS for private autonomous transactions on Ethereum

Zooming into ZK:

• Privado ID expands privacy-focused self-sovereign identity solutions beyond Polygon network

• Proof of SQL, an open-source ZK-proof, revolutionizes real-time data processing

• zkSync faces criticism over alleged lack of sybil filtering in ZK token airdrop

• zkSync community alarmed by $3.5M gemholic rug-pull scam allegations

• zkSync unveils ZK Nation, a decentralized governance framework for community-led protocol evolution

• Taiko launches permissionless sequencing and proving on Ethereum Layer-2 Mainnet

We dive into the details, so you don’t have to:

Privado ID, formerly Polygon ID, has spun off from Polygon Labs to offer its ZK self-sovereign identity solution beyond the Polygon network. This protocol-agnostic service enables users to control their identities and share only necessary information, enhancing privacy and security. With integration into Consensys' Linea zkEVM blockchain and proof-of-concept tests with major banks, Privado ID aims to support various blockchains while reducing trust and risk mitigation costs.

zkSync's ZK token airdrop has sparked controversy within the crypto community due to allegations of inadequate Sybil filtering. Polygon's Mudit Gupta criticized zkSync for what he deemed as the most "farmed airdrop ever," asserting that the distribution lacked effective anti-bot measures. Despite zkSync listing seven eligibility criteria aimed at preventing Sybil attacks, critics argue these are easily exploitable and insufficiently robust, leading to concerns over the fairness and integrity of the airdrop process.

Nansen clarified its role, stating it provided data on wallet segments but did not perform anti-Sybil checks or advise on token allocations. Meanwhile, zkSync defended its approach, suggesting that stringent Sybil detection methods often exclude genuine users unfairly. As the controversy unfolded, estimates suggested significant quantities of ZK tokens could potentially end up in Sybil wallets, valued at millions of dollars, impacting token prices on the market.

Connect with Automata on both X (Twitter) and Discord.

This newsletter is for informational purposes only. It is not intended to be a substitute for professional financial advice or interpreted as investment advice. Cryptocurrencies are volatile assets and you should always do your own research before making any informed decisions when investing or trading.