Nocturne, a privacy protocol funded by Vitalik Buterin, announced it will gradually shut down its operations.
In the most recent update, the privacy protocol known as Nocturne, which has received funding from Vitalik Buterin, stated that it will be gradually shutting down its activities.
Privacy Protocol Nocturne Doesn’t Give Any Reason Behind Closure
The company has not conducted business since its founding a year ago. In the announcement that they made, the Nocturne privacy protocol stated that they would gradually wind down their operations. They made this decision after terminating the privacy protocol they had established the year before.
The business will continue to allow withdrawals through the app’s frontend at app.nocturne.xyz until the end of the month. After this, they will transform the withdrawal procedure into a self-service system via their GitHub repository.
This will include providing comprehensive instructions on how to eject money using their command-line interface (CLI) tool. For the past year and a half, we would like to express our gratitude to everyone who has supported both the product and its purpose.
I am grateful for the support, the feedback, and the extra energy. “We hope that everyone has a prosperous future,” the Nocturne team said in their statement. It is interesting to note that this new event has occurred only six months after Nocturne successfully obtained financing from Bain Capital Crypto and Polychain Capital totaling $6 million.
Rumors circulated that they were developing significant technological advancements, including the integration of zero-knowledge proofs with blockchain technologies, account abstractions, and stealth addresses, aiming to introduce private accounts into public blockchain platforms.
Regulatory Crackdown
It is possible that the escalating regulatory action against privacy standards was one of the reasons for Nocturne’s decision to shut down, despite the fact that the company has not provided any specific reasons for its decision.
However, Vitalik Buterin, one of the co-founders of Ethereum, has been a staunch supporter of transactions that are predicated on anonymity. Within the cryptocurrency community, there has been a shift in the direction that discussions concerning privacy on the Ethereum blockchain have taken.
Ethereum, which is a foundational layer of blockchain technology, is the subject of the primary argument, which centers on whether or not it should intrinsically enable transaction privacy.
The perspective that Vitalik Buterin has regarding the default privacy of transactions is comparable to that of the Transmission Control Protocol (TCP).
The protocol that Ethereum uses is analogous to the operation of the Transmission Control Protocol (TCP), which operates in plain text and defers encryption responsibilities to higher layers.
However, Buterin thinks that Ethereum may take a similar approach, delegating encryption responsibilities to higher layers while maintaining a strong foundation upon which to build.