Railgun DAO, a blockchain project that prioritizes user privacy in transactions, has announced its partnership with Turkish developer Chainway to integrate a new feature called “proof of innocence.” The new functionality will enable Railgun DAO users to mathematically demonstrate that coins involved in transactions did not come from blacklisted addresses. This is crucial for satisfying anti-money-laundering and sanctions compliance requirements.

Chainway released its “proof of innocence” tool in January to prove that withdrawals from Tornado Cash, a coin mixer that was blacklisted by the U.S. Treasury Department last year, were not from specified deposits. Railgun DAO’s new functionality, initially developed by Chainway for Tornado Cash, will now allow users to create a proof that their transactions are from a list of transactions that have not interacted with any blacklisted addresses, without revealing their identity.

The Railgun privacy system is currently deployed on Ethereum, Polygon, Arbitrum, and Binance Smart Chain. With this new functionality, users can mathematically prove the legitimate origins of their funds and ensure that they comply with anti-money-laundering and sanctions regulations. The system is entirely zero-knowledge-based, meaning that user privacy is never compromised.

Lists of blacklisted addresses can be sourced from forensic tools such as Elliptic, TRM Labs, or Chainalysis, according to Railgun. This new feature is expected to have a proof of concept release in the second quarter of this year, with full delivery expected in the third quarter.

Digital Currency Group, the owner of CoinDesk, is an investor in Railgun DAO. This integration with Chainway’s “proof of innocence” tool will further enhance Railgun DAO’s position as a leading blockchain project for user privacy and anti-money-laundering compliance.