The everlasting search for anonymisation
Blockchain technology originated with a clear and unambiguous vision; to regain control of the financial system. A vision that is shared and practiced by many. Where Bitcoin started, other visionaries came forward and developed inventive and extraordinary products on blockchain technology. Think of Ethereum, Monero and Dash.
Soon after the introduction of blockchain technology, users had a collective desire to anonymise transactions. There were two main reasons for this: masking transactions with an illegal component and privacy. Some of us reading this are probably wondering right now: "Aren't transactions on the blockchain anonymous?". Transactions on a blockchain originated in principle as pseudo-anonymous. This means that there is no name attached to the transaction, so at first glance no user can be identified. However, by using the right analysis methods and tools such as Chainalysis, it is possible to follow a trail. This way, some users can still be identified.
In order to be truly anonymous, so-called “Privacy Coins” (also known as Dark Coins) were created. Unlike Bitcoin, the blockchain technology here has been modified to mask the path that a transaction follows (from person A to person B). This makes it impossible to paint a clear picture of who actually sent or received the transaction. However, the widely used platform Ethereum, praised by most developers for releasing new cryptocurrency, has so far not released a well-functioning concept where users are guaranteed to remain anonymous.
The demand for anonymity is already high, but will also grow among developers, privacy advocates and those who engage in illegal practices. The main reason for this is that it is assumed that the Privacy Coins can eventually be traced. This requires a constant development of new crypto currencies. Developers who have the knowledge to make this cryptocurrency, such as Ethereum, are happy to respond to this. Ethereum, for example, is developing a new cryptocurrency as we speak. Would you like to see a sneak peak of this? Then watch the Cryptocurrency Investigations session that Rick Harmsen recorded during Digital Experience 2020. To watch the session, please use your username and password from Digital Experience and log in here digitalexperience.events
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