The crypto industry has a monopoly on privacy

There are many reasons why the blockchain community has failed to make privacy a priority. These must be corrected.
Privacy is a complex topic. Privacy is an important topic. It is generally more interesting to discuss things that are controversial. The few arguments against privacy make it difficult to discuss and easy for people to assume that privacy is not important. Edward Snowden famously stated: “Arguing you don’t care about privacy, because you have no to hide, is like arguing you don’t care about freedom of speech, because you don’t have anything to say.” But what if privacy is not a priority for you? What if your privacy cannot be guaranteed? What if your privacy is not guaranteed? What is the equivalent of physical cash in a digital society? Satoshi Nakamoto seems to have found an elegant solution to this question, and a multitrillion-dollar market has developed around it. Satoshi’s original idea is flawed in at least one aspect. Legal tender is private. The transaction between two parties is private when they exchange banknotes or coins for a service or good. If the service or good is only available to a certain age group (beer runs don’t suit everyone), identification is required. The lady at the farmer’s market can’t see your bank account balance if you give her a $10 bill. However, transactions on the Bitcoin blockchain blockchain are transparent. The public can see transaction amounts, frequency, and balances. The Bitcoin whitepaper only devotes half a page to privacy, with suggested workarounds that may not always work as intended, particularly for second-generation account-based blockchains like Ethereum. Although there are a few blockchain networks that are designed with privacy in mind, most of them do not support complex programmability like smart contracts. This is why privacy has been left behind. Privacy has been pushed to the side by three other priorities: security and decentralization, as well as scalability. These three components are equally important, but nobody will argue against them. But does privacy have to be mutually exclusive? Privacy is difficult to guarantee. Privacy tools like zero-knowledge proofs were slow and inefficient historically. It is difficult to make them more scalable. Privacy is not a priority just because it is difficult. The last reason is the most worrying. Media propagates the myth that crypto transactions are anonymous. They are not. This means that many people are using crypto to pretend that their transactions are secure. The lack of anonymity is increasing as blockchain network analysis tools get more sophisticated. Privacy FinanceA friend of mine has been working in the crypto industry full time since 2015. She asked me recently, “WTF is Private Finance?” PriFi or “Privacy Finance” is the crypto industry’s admission of having a terrible record with privacy. We made so many mistakes that, twelve years after the industry’s inception, we are only now reaching the point where privacy can be considered a priority.Privacy FinanceA friend of mine who has been working in the crypto industry full-time since 2015 asked me, “WTF is PriFi?” PriFi, or “Privacy Finance,” is the crypto industry’s admission that we have utterly failed to protect privacy. Privacy is becoming more difficult to achieve as society becomes increasingly digital. This begins with educating the media about the differences between privacy and secrecy. Secrecy means not wanting anyone to know anything. Privacy is not a desire for the entire world to know something. Secretariat is a privilege. Privacy is a right. The next step is to make privacy easier. Privacy in crypto shouldn’t require complicated cryptography, clunky workarounds or obscure tools. Optional privacy should be possible on all blockchain networks, including smart contract platforms. The final step is to protect privacy. Privacy is an urgent issue. The U.S. infrastructure bill recently includes a clause that extends section 6050I of tax code. This requires individual counterparties collect personal information about each other for cash transactions exceeding $10,000 and applies it to cryptocurrency. Coin Center, a procrypto research and advocacy group, is planning to challenge the constitutionality this change for crypto. You can do the same here. With proper education, an intuitive user interface, and the motivation to make privacy a priority in crypto, we can defend and preserve our rights without being reckless, while also maintaining sensible privacy on our terms. Cointelegraph is not responsible for the views, opinions, and thoughts expressed here. Warren Paul Anderson is vice-president of product at Discreet Labs. He is currently developing Findora, a public, programmable blockchain. Previously, Warren was the product manager at Ripple for 4.5+ years. He worked on the XRP Ledger and Interledger protocols, the RippleX platform, and RippleNet’s On-Demand liquidity enterprise product. Warren co-founded Hedgy in 2014, one of the first DeFi platforms to allow derivatives using programmable and escrowed smart contract on the Bitcoin blockchain.

Relevant news

Leave a Reply