1/ Self-hosted wallets, a term you will likely hear more about as we roll in 2021. So, what are they and why are they important? A quick thread (with an in-depth report at the end):
2/ Simply put: self-hosted wallets allow individuals to engage in transactions over the internet on a peer-to-peer basis, with no other individuals or entities party to the transaction.
3/ These wallets demonstrate one of the key paradigm shifts of crypto: cutting out the middlemen. This presents new benefits (and challenges) to individuals, policymakers, & law enforcement agencies.
4/ Those law enforcement agencies are concerned that peer-to-peer wallets will prove irresistible to illicit actors + illegal transactions. This is understandable: criminals will exploit any financial system, whether traditional or crypto.
5/ We think some of the concerns are over-hyped (there is evidence that illegal activity is *more widespread* in the traditional financial system) & as recent high $ crypto forfeitures have shown, authorities are getting better at sniffing out bad actors.
6/ From the bird’s eye view, we believe that peer-to-peer tech is an undeniable net benefit to society at large. To ensure and increase consumer freedom + privacy, we urge Congress to take up the cause to protect the use of these wallets.
7/ For more info on this issue, read a quick summary post here: bit.ly/35CHdnj
For those looking for an in-depth primer, see our longer report here as well (compiled expertly by @millercwl): theblockchainassociation.org/wp-content/upl…
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