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:

• BIS stresses the importance of legal frameworks that protect CBDC users’ privacy

• Parliamentary committee calls for shutdown of Worldcoin in Kenya over user privacy and data protection concerns

• Oasis announces plans to bring Oasis Privacy Layer to Cosmos via Orai Chain

• Aztec Labs awards largest $450,000 bug bounty to white hat for uncovering a vulnerability in Aztec Connect

• Nym to launch Nyx blockchain on Cosmos

• Secret Dashboard now automatically wraps incoming IBC token transfers into a privacy-preserving Secret token, or SNIP-20

Op-Ed:

• Cointelegraph touches on Vitalik Buterin’s Privacy Pool proposal and its potential to strike a balance between privacy and compliance

• Ocean Protocol writes about why the AI boom needs Web3 and the privacy challenge

Zooming into ZK:

• Vitalik considers implications of adding ZK-EVM to Ethereum mainnet

• ConsenSys' Layer-2 network Linea to issue Soul-Bound Token (SBT), Voyage XP

• ZeroSync implements first Stark-based ZK client for Bitcoin

• Panther partners with PureFi Protocol to set the foundation for greater adoption of privacy-preserving solutions in Web3

• Matter Labs, the team behind zkSync Era, announced a competitive audit contest focused on Web3 with Code4rena with 1.1 million USDC

• Polyhedra Network joins the ELEDAO ecosystem to enable cross-chain interoperability for Element users via zkBridge

• Buenos Aires to roll out digital identity solution built on zkSync Era for citizens

• Google Cloud to serve as a validator for Polygon when the network transitions to a zkEVM validium

• OP Labs lays the foundation for a multi-proof system that can include ZK proofs

X Spaces you missed:

• Secret explores the use of Axelar’s upcoming General Message Passing (GMP) capability to extend its Privacy as a Service solution across chains beyond IBC

• Scroll shares how they harness ZK for enhanced privacy and digital ownership

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

Worldcoin, initially launched to combat online bot activity by offering retinal scans for identity verification, has come under scrutiny from global regulators who accuse it of bypassing data protection and privacy regulations. A recent report from Kenya’s parliament exposes ongoing personal data collection by Worldcoin despite a cease order, possibly including minors’ information, raising serious privacy concerns. The report also underscores the difficulty in determining the exact number of “orbs” used by Worldcoin for iris scans within Kenya.

The Buenos Aires government is launching a decentralized digital identity protocol called QuarkID, using an application built on Matter Labs' zkSync Era rollup. Starting in October, residents can download the QuarkID wallet to access essential personal identification documents like birth and marriage certificates. The QuarkID platform will leverage zkSync Era as the settlement layer to ensure secure document ownership, granting users full control over their data and the management of certificates when interacting with public services.

https://twitter.com/zksync/status/1707365023788503152

Blockchain developer, ZeroSync, has implemented the first client system using Stark proofs for the Bitcoin header chain. This empowers Bitcoin users to validate the state of the network without the need to download the entire blockchain or relying on third parties. ZeroSync highlights the potential of ZK proofs for heightened privacy and scalability, stating that “By enabling a party to authenticate a statement’s truth without revealing any additional information, ZK proofs can substantially address Bitcoin’s challenges related to transaction speeds and network congestion”.

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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.