Edward Snowden: The main flaw of Bitcoin is privacy, not scalability.
Edward Snowden does not consider it appropriate for Bitcoin to be a public book, saying that the main challenge with cryptocurrency is the inability to hide the user’s identity at levels such as digital currencies like Zcash have.
Snowden said that there is no way that a coin that can be traced in a public book, to the point where the transaction history and the pattern of use of an individual can be identified, is acceptable to all. He also stated that despite Bitcoin’s successes, it had to be completely anonymous to gain the trust of people who consider their privacy a primary concern.
Bitcoin was originally promoted as anonymous, however, there is a limit to the anonymity of the cryptocurrency because it has a public key that anyone can see. All that is needed to link the public key with the owner is an identifiable identity, such as an IP address. Therefore, Bitcoin users should keep their public keys as remote as possible from their true identifications to remain anonymous.
Snowden, who became famous for giving a whistle to the NSA organization, made the claim by addressing the participants in the Blockstack event in Berlin, Germany. He said that cryptocurrencies with more advanced privacy features are more practical, since no one concerned with privacy would want all their transactions traced in a public book.
Although Bitcoin is not completely anonymous, certain security features have been developed so that they can be used together to improve privacy. Cojoin and Tumblebit are examples of such applications to improve privacy. However, the best option is to keep public keys as far as possible from the real identity.
Snowden said that public books are data mines for governments that would not miss the opportunity to obtain as much data as possible.
“Bitcoin users may not be able to completely hide their identifications. One approach is, never mention that you own cryptocurrencies. “
The perceived anonymity of Bitcoin is one of the reasons why the dark web and some criminal elements have been associated with it. Obviously, it is reasonably anonymous and users should make a conscious effort to stay that way. But with these days of KYC protocols, anonymity is being minimized.
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