Binance founder Changpeng Zhao, known as CZ, recently discussed the future of the crypto industry with investor Chamath Palihapitiya. The participants considered the lack of privacy the primary obstacle to the widespread use of cryptocurrencies. Current network architecture makes it easy to track senders' financial transactions.
Scaling in Question
Chamath Palihapitiya avoids calling himself a Bitcoin maximalist because coin fungibility issues stifle the growth of the entire ecosystem. Zhao completely agrees with him.
“The openness of the ledger acts as a wall preventing cryptocurrencies from becoming an everyday reality for billions of people,” he noted.
Bitcoin creators built pseudonymity principles into the system from the very beginning. However, centralized exchanges with strict KYC protocols currently collect comprehensive user data. Zhao highlighted the incredible ease of deanonymizing transfers today.
Security Threat
Previously on X, Zhao provided a clear example involving corporate payroll. If a company processes salaries through a blockchain, anyone curious can examine the smart contract to discover the exact income of the entire team.
During the recent conversation, he added another argument about hotel bookings, where crypto payments instantly reveal a person's physical location. Most countries have laws that strictly punish publishing home addresses. Meanwhile, a transparent blockchain makes such sensitive information completely public.
Privacy in Everyday Details
Palihapitiya also reminded listeners about the importance of hiding ordinary daily transactions.
“Why should the world know you bought a video game or a pack of cigarettes? People deserve the right to keep their spending private, away from prying eyes,” he stated.
Regular fiat dollars offer an ideal solution in this regard by providing complete anonymity. Cash guarantees absolute payment secrecy regarding the previous owners of a specific bill.
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This post is for informational purposes only and does not constitute advertising or investment advice. Please do your own research before making any decisions.