What Many “Privacy Coins” Fundamentally Misunderstand About Satoshi’s Vision

[Mark Mason]

What Many “Privacy Coins” Fundamentally Misunderstand About Satoshi’s Vision

Privacy is a key buzzword in the cryptocurrency community, in particular in its libertarian sections. On a recent panel at the New Hampshire Liberty Forum, a vigorous discussion was sparked about the public vs. private elements of blockchain, as well as the dual conflicting goals of often-dubbed “privacy coins” to both hide information and keep it public.

While some very good points were made, I was a little surprised at how misunderstood the original vision behind Satoshi Nakamoto’s amazing invention was by many who had been involved in cryptocurrency for many years. It’s important for the thought leaders in this space to remember why we all came here in the first place, and design privacy models that work without destroying the inherent value that cryptocurrency provides.

Read more: https://www.dashforcenews.com/what-...mentally-misunderstand-about-satoshis-vision/

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Satoshi went of this privacy approach in the whitepaper:

“The traditional banking model achieves a level of privacy by limiting access to information to the parties involved and the trusted third party. The necessity to announce all transactions publicly precludes this method, but privacy can still be maintained by breaking the flow of information in another place: by keeping public keys anonymous. The public can see that someone is sending an amount to someone else, but without information linking the transaction to anyone. This is similar to the level of information released by stock exchanges, where the time and size of individual trades, the “tape”, is made public, but without telling who the parties were.”


And how can we keep our public keys (aka personal wallets) anonymous?

1. By implementing a proof of individuality scheme (which is not implemented yet in Dash)
2. By using TOR network (which was banned in Dash )
3. By communicating each other using the darknet (alternative routing paths not controlled by governments) rather than internet (which is not the Dash case)