# Privacy Matters, 48 By [Automata Network](https://paragraph.com/@automata-network) · 2024-06-25 --- gm, readers. At [Automata](https://www.ata.network/) 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](https://www.coindesk.com/policy/2024/06/11/crypto-mixers-privacy-coins-layer-2s-complicate-tracing-for-law-enforcement-eu-innovation-hub-says/?_gl=1*cds55p*_up*MQ..*_ga*MjMxMjI2NzczLjE3MTgyNjk5MjU.*_ga_VM3STRYVN8*MTcxODI2OTkyNC4xLjEuMTcxODI2OTk3Ni4wLjAuODAyODQxMDA.) challenges posed by privacy coins, Layer-2 networks, and crypto mixers in tracking illicit assets * Decentralized digital identity [enhances](https://cointelegraph.com/news/istanbul-enhances-data-privacy-with-decentralized-digital-identity) privacy and security in Istanbul * Former Coinbase Communications Head joins Worldcoin to [spearhead](https://www.coindesk.com/business/2024/06/10/coinbases-former-head-of-communications-joins-worldcoin/?_gl=1*1oo9fy8*_up*MQ..*_ga*MjMxMjI2NzczLjE3MTgyNjk5MjU.*_ga_VM3STRYVN8*MTcxODI2OTkyNC4xLjEuMTcxODI2OTk3Ni4wLjAuODAyODQxMDA.) global expansion and biometric innovation * Ava protocol [raises](https://www.coindesk.com/tech/2024/06/11/protocol-village/?_gl=1*y9emdx*_up*MQ..*_ga*MjMxMjI2NzczLjE3MTgyNjk5MjU.*_ga_VM3STRYVN8*MTcxODI2OTkyNC4xLjEuMTcxODI2OTk3Ni4wLjAuODAyODQxMDA.) $10M to develop EigenLayer AVS for private autonomous transactions on Ethereum **Zooming into ZK:** * Privado ID [expands](https://cointelegraph.com/news/privado-id-self-sovereign-identity-control) privacy-focused self-sovereign identity solutions beyond Polygon network * Proof of SQL, an open-source ZK-proof, [revolutionizes](https://cointelegraph.com/news/open-source-zk-proof-slashes-sql-query-times-sub-seconds) real-time data processing * zkSync [faces](https://cointelegraph.com/news/zksync-token-airdrop-criticism-sybil-vulnerabilities) criticism over alleged lack of sybil filtering in ZK token airdrop * zkSync community [alarmed](https://cointelegraph.com/news/gemholic-scam-suspected-rug-pull-zksync) by $3.5M gemholic rug-pull scam allegations * zkSync [unveils](https://www.theblock.co/post/299245/zksync-introduces-a-decentralized-governance-framework-called-zk-nation) ZK Nation, a decentralized governance framework for community-led protocol evolution * Taiko [launches](https://www.theblock.co/post/298877/taiko-enables-permissionless-sequencing-and-proving-after-mainnet-rollout) permissionless sequencing and proving on Ethereum Layer-2 Mainnet [Subscribe](null) **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. [![User Avatar](https://storage.googleapis.com/papyrus_images/26df8a80d5290f7767fd08cf4d8c37fb94842bcaa86fc72e4ae7888516d8a774.png)](https://twitter.com/TheZKNation) [ZK Nation](https://twitter.com/TheZKNation) [@TheZKNation](https://twitter.com/TheZKNation) [![Twitter Logo](https://paragraph.com/editor/twitter/logo.png)](https://twitter.com/TheZKNation/status/1801378349442269345) Thank you for all the feedback and discussions over the past few days. In 2024, airdrops are extremely challenging. Sophisticated industrial farms operate millions of bots indistinguishable from real people in behavioral patterns. This renders traditional activity-based airdrops [![Like Icon](https://paragraph.com/editor/twitter/heart.png) 3,347](https://twitter.com/TheZKNation/status/1801378349442269345)[ 5:17 PM • Jun 13, 2024 ](https://twitter.com/TheZKNation/status/1801378349442269345) 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)](https://ata.ws/twitter) and [Discord](https://ata.ws/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. --- *Originally published on [Automata Network](https://paragraph.com/@automata-network/privacy-matters-48)*