Tornado Cash Fallout: Can Ethereum Be Censored?

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Tornado Cash Fallout: Can Ethereum Be Censored?
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Can Ethereum be censored? Services using Ethereum can, but the protocol itself hasn't been censored. But just because it hasn’t happened yet does not mean that the protocol is immune.

Services can be censored. Ethereum infrastructure providers like Infura and Alchemy have already restricted access to data on Tornado Cash smart contracts. Circle, the company that powers the USDC stablecoin, has begun denying service to accounts that have interacted with Tornado-linked addresses.– the technology dictating whether transactions get propagated out to the rest of the network – has not been censored. If a U.S.

For the pranksters, this proves these sanctions were clumsily defined and therefore difficult to apply practically. But it also demonstrates how interpreting the sanctions requires one to get a bit technical. Now let’s look back at the Tornado Cash situation. If a validator adds a Tornado Cash transaction to a block, would they be running afoul of sanctions? While unlikely, the answer to this question isn’t so clear.

Thus far there’s no evidence from these validators that they will, indeed, censor transactions. It’s not even clear that governments would require them to do so. However, elonyverse’s tweet raises important questions about the influence that states could theoretically have over a blockchain the more centralized its validator set.

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