Thread: Some Thoughts On Privacy, Defi, And Adoption
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Encrypting important information has been a concern of us humans since the dawn of written history...
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Encrypting important information has been a concern of us humans since the dawn of written history...
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The Spartan's scytale devices, Da Vinci's cryptex, James Jay's invisble ink in the Revolutionary War...
All of these are historical antecedents of what we see in crypto today, so far most notably via innovations such as Monero, Tornado Cash, etc.
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All of these are historical antecedents of what we see in crypto today, so far most notably via innovations such as Monero, Tornado Cash, etc.
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I believe in the importance of privacy in financial transactions from an idealistic/ideological point of view, but in this thread I want to talk about the nexus between privacy and adoption, which are not two concepts one typically hears discussed together.
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As he states in the article:
"Without [privacy] Ethereum fails because having all transactions (and POAPs, etc) available publicly for literally anyone to see is far too high a privacy sacrifice for many users..."
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"Without [privacy] Ethereum fails because having all transactions (and POAPs, etc) available publicly for literally anyone to see is far too high a privacy sacrifice for many users..."
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The easiest example of the above for most of us is the desire of on-chain traders/investors to have at least some measure of privacy.
Certainly we have many 'high-profile' traders/whales/etc in defi, but it is understandable if not everyone wants to replicate such a path.
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Certainly we have many 'high-profile' traders/whales/etc in defi, but it is understandable if not everyone wants to replicate such a path.
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The rise of privacy solutions within defi will also aid in on-chain adoption because it means people will become less reliant on cex's, which currently serve as 'mixer stand-ins' to some extent, as a roundabout way to obfuscate wallet trails.
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In my opinion though, the most significant effect of increased on-chain privacy preservation will be to facilliate the migration of more 'traditional business' on-chain.
And by this I mean stuff like AP/AR, payroll, balance sheet management, accounting, etc.
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And by this I mean stuff like AP/AR, payroll, balance sheet management, accounting, etc.
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However, most businesses do not want all their transactions public for all to see.
As a result, significant amounts of normal business financial operations won't successfully be migrated on-chain until there are better options for maintaining privacy.
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As a result, significant amounts of normal business financial operations won't successfully be migrated on-chain until there are better options for maintaining privacy.
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Likewise, while there has been definite success in using on-chain rails for small everyday transactions (coffee, lunch, etc), it seems clear that privacy-preserving mechanisms will make such 'everyday use' far more palatable for your average person.
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Conclusion:
A framework for allowing users to natively utilize the EVM in a manner that affords privacy is a big (and ambitious) leap forward.
It also seems to be one of the final keys that can finally unlock widespread adoption of on-chain rails...
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A framework for allowing users to natively utilize the EVM in a manner that affords privacy is a big (and ambitious) leap forward.
It also seems to be one of the final keys that can finally unlock widespread adoption of on-chain rails...
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Appreciate you reading gud friends!
if you found the above interesting would be honored if you RT/comment/etc!
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if you found the above interesting would be honored if you RT/comment/etc!
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Some proverbial defi Chad-tagging for the culture (recommend following all these people!):
@ViktorDefi
@zerototom
@ayyyeandy
@Dynamo_Patrick
@arndxt_xo
@crypthoem
@CryptMoose_
@jake_pahor
@0xsurferboy
@2lambro
@eli5_defi
@schizoxbt
@Subli_Defi
@thehiddenmaze
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@ViktorDefi
@zerototom
@ayyyeandy
@Dynamo_Patrick
@arndxt_xo
@crypthoem
@CryptMoose_
@jake_pahor
@0xsurferboy
@2lambro
@eli5_defi
@schizoxbt
@Subli_Defi
@thehiddenmaze
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Note: Linking back to first tweet belwo...
If you enjoyed please comment/arl
If you enjoyed please comment/arl
https://twitter.com/rektdiomedes/status/1673606136551841793
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