Bitcoin Privacy and the Silver Lining of Transparent Blockchains
The transparent bitcoin blockchain is the Orwellian nightmare you can’t wake up from. All of your funds are being analyzed by deterministic wallet explorers and correlated against unwanted transaction hashes. It’s not safe.
Here’s the silver lining of transparent blockchains:
- Bitcoin users will be forced to use 3rd party mixers to sufficiently stir the chain so their money can’t be implicated in somebody else’s transactions. This provides miners incentive to keep hashing on a worthless, transparent blockchain. Millions of transactions created for the purpose of plausible deniability; How many outputs are you removed from a ransom payment, drug deal or bank heist?
- Regulators will be happy because they’ll have something to regulate. Namely, a bitcoin blacklist.
The only innovation in the blockchain space that matters is zero knowledge proof and on-chain privacy.
The real winners in the digital cash space will be distributed, decentralized, AND PRIVATE blockchains.
The front-runners in blockcain privacy are Monero and Zcash- Monero being the only decentralized/distributed offering in existence at the time of this writing.