What Happens In Cyberspace Stays Online Forever: Cryptocurrencies And Privacy
Bitcoin’s staggering growth and adoption brought strong scrutiny to its transaction rates capabilities. Discussions about this particular shortcoming erroneously judge technological limitations as a static characteristic of the offering and sometimes conclude the debate, advising in favor of cryptocurrencies with faster transaction rates. These deliberations fail to understand that blockchain technology is different than past storage solutions and that transaction speed, although important, is not a core principle or commitment that will likely define the long-term success of a cryptocurrency.
At a high level, Bitcoin’s blockchain can be viewed as a list of all Bitcoin transactions ever performed. This list is duplicated in various computers on the internet and is open for anyone to copy. Contrary to popular belief, Bitcoin transactions are not anonymous but pseudo-anonymous. Although senders and receivers may not be known, transactions and their values are public knowledge that blockchain exposes. It’s possible, for example, to know precisely how much a ransomware campaign capitalized. It’s also possible to know how many payments and the total compensation an organization using a static Bitcoin address received. In most cases, these disclosures done by default are not a desirable feature. ..Read More..