Finding Balance: Transparency and Privacy in Blockchain

Tanya Sharma
Tanya Sharma Published on September 14, 2023 07:59 PM

In the ever-changing world of blockchain, finding a way to blend privacy and transparency is a big challenge. Alex Svanevik's thoughts shed light on the complexity of this task.

Finding Balance: Transparency and Privacy in Blockchain
Source: Unsplash

In the world of blockchain, striking the right balance between keeping things private and letting them be seen by others is a hot topic.

Alex Svanevik, the CEO of Nansen, a company that studies blockchain, has some important things to say about this. 

He thinks there will be a way in the future to do both and still follow the rules.

This article will explore Svanevik's ideas, focusing on the challenges and possible solutions to achieve this balance.

Privacy Views Change with Time

Svanevik points out that different generations have different feelings about privacy.

Younger people today are very comfortable sharing their lives on social media like TikTok and Instagram. Back in the day, this would have surprised a lot of folks. 

This shift suggests that in the future, people might be more okay with others knowing about their assets.

Tricky Choice: Keeping Secrets and Being Open

Svanevik believes that it's impossible to have total privacy and total transparency at the same time in Blockchain. The key is finding a middle ground.

Focusing only on privacy might make it hard to deal with bigger companies, exchanges, and protocols. 

On the other hand, being completely open might make people uncomfortable, as everyone wants a bit of privacy.

Customizing Settings for Different Situations

To solve this challenge, Svanevik suggests that projects create options that can be adjusted based on what's needed. 

This means giving users the choice to lean more towards privacy or openness, depending on the situation. 

This way, people can make decisions that suit them best.

Svanevik brings up an important point about following rules. While making very private big transactions might not sit well with regulators, smaller transfers might not raise the same concerns. 

The goal is to find a middle ground that respects both privacy wishes and the need to follow the rules.

Hoping for the Right Solution

Even though Svanevik hasn't seen a perfect way to balance transparency and privacy yet, he's hopeful.

He believes that in the near future, someone will come up with a solution that works well and gets the thumbs up from regulators. It's just a matter of time.

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