Reddit User Calls US Sanction On Tornado Cash An Attack On ETH, Gives Solutions

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Crypto Regulation
Reddit User Calls US Sanction On Tornado Cash An Attack On ETH, Gives Solutions

On August 10th, a Reddit user @AllwaysBuyCheap, published a post calling the US government’s recent sanctions on Tornado Cash an attack. According to the crypto enthusiast, this sanction opens a new era in ETH’s history. Besides, this is the first time the government directly sanctions a smart contract. 

Non-Decentralized Protocols And Platforms That Are At Risk 

According to the post, the US government has shown via their acts that they are aware of the weaknesses in the crypto sector. However, the crypto enthusiast believes this can serve as a pointer to the crypto community and prepare them for upcoming attacks.

@AllwaysBuyCheap believes these upcoming attacks will occur once the ETH network begins to displace a significant portion of the financial system. Therefore, two systems that are at risk include non-decentralized protocols and platforms.

Usually, they are not very important but are necessary for the network to function properly. The poster went on to highlight the various platforms and protocols that are at risk and possible solutions for them.

The first on the list is Remote Procedure Calls (RPCs). RPC provides access to a server node on a given network and enables communication and interaction with that blockchain.

The developer argued that having a completely decentralized system does not make sense if the channel used for the connection is centralized. Therefore, decentralized RPCs must start being used in wallets. 

Unfortunately, operating a complete node takes a lot of hardware. Therefore it is not simple. Fortunately, the developer highlighted that light client would soon be available. This would allow a developer to query and authenticate the network using little resources. 

USDT/TETHER Is Not A Good Stablecoin 

Another protocol the user mentioned is DNS (Domain Name System). According to the developer, Dapps must have an IPFS frontend accessible through an .eth domain. Unfortunately, this is insufficient because centralized RPCs are presently used for DNS translation. 

To solve the problem, browsers must utilize light clients as the preferred DNS resolver once they are made available. The next point of call was GitHub. 

@AllwaysBuyCheap referred to GitHub as a critical point of failure that could endanger the security of ETH. The developer stated that a global, decentralized, searchable location where all of the Dapp’s code is constantly available must have a user-friendly UI for interacting with it.

However, Gitopia and radicle are two initiatives that are presently working to find a solution to this issue. Additionally, the post mentioned that USDC/TETHER is dangerous to the crypto community. 

The developer noted that fully decentralized stablecoins don’t exist. However, FRAX and DAI are far superior alternatives since some of their backings are provided by assets inside the chain.

Additionally, the post stressed the importance of the Metamask platform as a vital component of most Ethereum transactions. Meanwhile, there have not been any issues with it. 

Crypto Users Are Advised To Avoid All KYC Procedures 

Furthermore, the developer also stressed the need for dapps such as Coinbase. The developer said that localcryptos is superior to Coinbase. This is due to the KYC (Know Your Customer) requirements on Coinbase, which removes the anonymity enjoyed by crypto users.

Additionally, the article stated that a government ban on decentralized apps would be a major catastrophe. Hence, users were advised to remain anonymous and avoid KYC.

However, some comments on the platform applauded the decision of the government. They believe the country is trying to curb the issue of money laundering, hence, its recent action.

Unfortunately, other users questioned why the government did not block other crypto mixers such as Monero, given that both platforms offer anonymity and have been used to launder funds.

Ifeanyi Egede

Ifeanyi Egede is an experienced and versatile writer and researcher. He has keen interest in blockchain technology, cryptocurrencies, NFTs, Web3, metaverse, fintech and emerging technologies. He has tons of published works both online and in the print media. He has close to a decade of writing experience. When he is not writing, he spends time with his lovely wife and kids.