Hey friends,
I’d like to understand if Cardano SL offers (or will offer in the future) privacy of transactions? Is it pseudonymous like Bitcoin, or anonymous like Monero? Or will there be something similar to Dash - optional privacy?
I have seen in the description of the protocol the conundrum a blockchain faces and how it must “square the circle” in order to achieve both privacy and possibility of regulation.
Does anyone know the approach the team takes with regards to privacy?
Currently it’s more like Bitcoin than anything else.
However, Charles has said that they will be looking into the privacy aspect. However, to what extent it will be private will likely be based around what the ADA holders decide they want.
That said, he has cautioned that he believes that privacy on the level of Monero will likely not ever work with the regulations in place. This means that coins of that level of privacy will likely be de-listed from exchanges.
Cardano could go down that road if the ADA holders so choose, but that would exclude a large population from utilizing the token. He has hinted in the past that the probable best route is something that can be made private when necessary. All that said, I imagine that eventually Cardano will go down the route of “privacy when needed” — of differing levels.
Just my two lovelaces.
I would like to believe that would be the direction. But I think with the ability to interface with other blockchains, I cant see any other way than complete transparency. Too many bad actors would take advantage of the anonymous ability to stay fluid with intent to move large amounts of funds across multiple platforms to fund their agenda. Just what I think. playing devils advocate.
I believe you will be able to make yourself “public” by adding meta data if you want access to stuff that requires regulation. Otherwise, don’t and remain private.
With bitcoin the address is fixed isn’t it, so people can see how much BTC an address holds, but with Cardano, the addresses keep changing, so it has more privacy already.
Worthy of notice in respect to privacy is the collaboration of IOHK with Zencash - an explicitly anonymous blockchain. When Zencash will implement the sidechain protocol, one would be able to get all the perks of Cardano, while keeping the privacy, if so desired, and when appropriate.