Blockchain Privacy Shapes the Future of Crypto Networks

Source: CryptoNewsNet Original Title: Blockchain Privacy Shapes the Future of Crypto Networks Original Link: https://cryptonews.net/news/blockchain/32249811/ Yuval Rooz, the Co-founder and CEO of Digital Asset has brought about a concern on privacy and regulations in crypto. He argues that a lot of blockchain networks these days don’t cater to the actual needs of privacy. Thus this problem seems to be a risk for both users and also institutions. As blockchain is now becoming more widely used this seems to be something that needs immediate attention.

Blockchain Privacy in Mainstream Networks

Rooz stated that a lot of blockchains are built to be almost completely transparent. Which back when it was introduced seemed to be a great deal of trust. Yet now it has made users see a lot of unexpected side effects.

“Most mainstream blockchain transactions today are highly transparent,” Rooz said, arguing that transparency to this extent is not really privacy. But instead it is rather a disadvantage, as a lot of people can jump the queues to get ahead. Where the data transactions can be taken before it is even finalised.

In the traditional markets all the transactions are kept safe until it is settled. Rooz says that the blockchain network should also aim to follow this method. Instead of exposing all the action and data in real time.

Transparency vs. Privacy in Blockchain

One of the key things that Rooz addressed was the misunderstanding how the crypto industry is completely against blockchain privacy. But most of the regulators are not really against privacy itself, he stated. They are more worried about the idea of being fully anonymous because it can lead to more financial crimes.

“Regulators are opposed to anonymity, not privacy,” he explained. This separation shows the clear difference between the two. How privacy aims to keep users and businesses safe, while anonymity can take away accountability if anything goes wrong.

Drawing a Balance with Regulation

Rooz argued that the answer to this problem is not choosing between them. But rather designing a system that is fair to both privacy and regulation. A well structured framework that hides sensitive information from the public but also allows regulators to have access when needed.

That is why he developed a blockchain that focuses mainly on privacy. Also recently getting $135 million in funding as the U.S. laws are now supporting blockchain.

This perspective of Rooz shows that the topic of privacy in the crypto world is changing. Instead of seeing blockchain privacy as a problem, networks are now treating it like a necessity.