Privacy on Blockchain
For all the claims that are getting done over the years about bitcoin being a safe haven for criminals. It’s becoming increasingly clear that capital flows on the blockchain aren’t private.
Bitcoin itself indexes poorly on both the anonymity and confidentiality fronts, as addresses offer pseudonymity at best, and balances are completely public.
Companies like Elliptic and Chainalysis are building businesses around blockchain forensics, and as the network increases in value, incentives to track flows of capital only become stronger.
While privacy by default may seem like an obvious solution, we see that zcash may be well-suited for use cases such as personal or business banking situations in which privacy is generally desired, but auditability is required.
Beyond ideology though, practical considerations still figure prominently.
Fortunately, developments are being made at the intersection of math and cryptography that will likely continue to cut down on the trade-offs between privacy, efficiency and trust.
And make no mistake, there are big trade-offs today.
Key questions include whether advances from these cryptocurrencies will continue to necessitate the existence of dedicated blockchains (with unique tokens), or whether they will simply serve as testing grounds for features that will migrate to dominate coins.
So far, it appears that the leaders of major blockchain ecosystems are hoping the outcome might be the latter.
To read the full article check here