Private cryptocurrency or a blockchain with privacy features

Brian Armstrong, Co-Founder and CEO of Coinbase Exchange, said that “a private cryptocurrency” will enter the mainstream by 2020.

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1 Private cryptocurrencies, listed on exchanges

2 Privacy functions, working on major blockchains

2.1 Related posts:

In a post published on the Coinbase blog, Armstrong said that by 2020 we will see the integration of privacy features into one of the most important blockchains. He also predicts that a cryptocurrency with such features will enter the mainstream in the coming years:

“Like the Internet, which launched with HTTP and only later introduced HTTPS as a default on many websites, I think we will eventually see a private cryptocurrency or a blockchain with built-in privacy features. mainstream adoption in 2020 ”.

Its position is shocking, considering that, lately, private cryptocurrencies have suffered. The supervisory authorities consider that they facilitate the illegal activities.

Private cryptocurrencies, listed on exchanges

In March 2019, the head of the Financial Committee of the National Assembly of France proposed to ban so-called anonymous cryptocurrencies. In May, the Coincheck Japanese exchange listed four private currencies. The Japan Exchange Association recommended its members to follow suit.

Currently, the crypto market has several types of private cryptocurrencies, the most popular being Monero (XRM), Zcash, Dash and Verge. It offers address hiding functions and traded amounts, and has a total market cap of nearly $ 1.8 billion.

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Privacy functions, working on major blockchains

When it comes to integrating privacy features into major blockchains, the process has already begun.

For example, Blockstream released the test code for using Schnorr signatures on the Bitcoin blockchain in February 2019. They help network confidentiality and increase scalability. Discussions on the possible implementation are still ongoing.

Ethereum’s blockchain added support for ZK-Proofs in September 2017. This is a cryptographic system that allows data validation without access to it.

In late October 2018, audit and consulting giant Ernst & Young announced the launch of the ZK-Proofs prototype on the Ethereum public blockchain.

Confidentiality in the crypto industry is a controversial topic. Some believe this is a fundamental premise for peace of mind and security. Others believe that anonymity is only useful to offenders.