The world may be shifting towards a future where individuals are more comfortable with the transparency of their assets and ownership, according to Alex Svanevik, CEO of blockchain analytics firm Nansen. In an interview with Cointelegraph, Svanevik discussed the delicate balance between privacy and transparency in blockchain analytics.
“You cannot get 100% transparency and 100% privacy,” Svanevik stated. “I think many of us want to have as much transparency as possible on corporate entities, exchanges, protocols, etcetera. But we expect some degree of privacy at the individual level.”
Svanevik argued that being completely private would result in a lack of transparency expected from corporate entities. Conversely, being overly transparent is an uncommon stance as individuals generally desire some level of privacy. Svanevik noted that there is a generational aspect to the issue, with younger generations placing less emphasis on privacy due to their openness on social media platforms.
When addressing the trade-off between privacy and transparency, Svanevik suggested that projects need to find a middle ground. He proposed settings that allow for different levels of privacy and transparency depending on the circumstances.
However, balancing privacy and transparency could have regulatory implications. Svanevik noted that regulators might not be comfortable with assets worth $500 million being transferred through protocols like Tornado Cash, a sanctioned crypto mixer. Nevertheless, regulators may be more lenient when it comes to smaller asset transfers.
While Svanevik has yet to see a protocol that strikes the perfect balance, he believes that someone will develop a solution in the coming years that satisfies both privacy concerns and regulatory standards.
In conclusion, it seems that the world is trending towards greater asset transparency, although individuals still value their privacy. Finding a middle ground between privacy and transparency is crucial, and in the future, a protocol that achieves this balance may emerge.
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About the author - J-S Tremblay
I've been involved in the cryptocurrency world since 2016 and trading since 2019. I started Moon and Lambo in 2021. I'm passionate about crypto and love to share my knowledge. I hate bankers and I hope that cryptocurrency will change the financial world for the better. View full profile...
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