We're Still Waiting for Privacy's Killer App

January 17, 2021

DeFi is blockchain's killer app for finance, but what is its killer app for privacy?

The answer seems to be pseudonymous identities, but we're still waiting for a useful implementation.

Decentralized, pseudonymous identities allow you make secure attestations about yourself without revealing who you are. For example, you could prove you have a college degree and that you own one full Bitcoin without revealing which college you attended, your wallet address, or your real name.

Crypto already provides a degree of anonymity, but in truth, it has a lot more visibility than you might expect.

Hiding behind an inscrutable wallet address is not enough to protect your identity when transferring money.

Unless you use one of a few privacy specific chains or run your money through a mixing service, it's fairly easy for law enforcement to determine who made what transaction.

As exchanges face more and more know your customer laws and more attempts are made to ban non-custodial wallets, individual privacy is increasingly threatened.

Crypto shouldn't be a tool for tax evasion, but it should disrupt the constant privacy invasions that surveillance capitalism enables. Pseudonymous identities are the first step.


© 2020 Connor Daly