If there’s one thing that we can all rely on, it’s likely that bitcoin and the crypto industry need to get their privacy protections up the ante. While blockchain is typically more secure than other forms of digital finance technology, we often hear stories about exchange hacks and malicious actors seeking digital funds that just don’t belong to them to get their fingers.
Bitcoin Halving May 2020 is an event that the entire cryptocurrency community is excited about. Halving is predicted to bring about a price increase as mining the world’s largest cryptocurrency will become more difficult while wiping out the scammers and fraudsters at the same time.
The need for improving Crypto Currency privacy
Kevin Pan, CEO of Poolin, which is one of the crypto’s top three Bitcoin mining pools, says privacy at this time should be the biggest concern for Bitcoin. He also says that the approach of the government to regulating cryptocurrency and transactions can potentially lead to further problems if people are not careful down the line. Government bodies can possibly work their way into the crypto space so profoundly, according to Pan, that they would tell bitcoin miners which transactions to allow and which ones to ban. If this becomes the case, Bitcoin will be a centralized currency unit, and those who carry out the transactions will have much less say about what they obtain or how they send money. Therefore, when enough miners decide to reject the transactions of a user the funds of that individual may be frozen indefinitely. This is a type of what he terms “network surveillance” in many respects. Bitcoin is probably the most vulnerable as it is by market cap the world’s largest Cryptocurrency and covers the most land in daily transactions.
Security concerns from CEO of Ledger
This is not the first time that concerns are being raised on the security and privacy of cryptocurrency. Recently, CEO of Ledger (Wallet producer), Despite calling bitcoin a great technology Gauthier says security is still a top concern, as it is still the “main problem” of the industry. Bitcoin’s terms, cryptocurrencies, and blockchain are technologically fantastic, but the “one mistake, one big problem” is the “endpoint protection.” As he noted, once a consumer loses his private key, his funds are gone.
How to solve the privacy issue?
Kevin Pan was quick to point out that, the majority of privacy issues in crypto space mainly to bitcoin, and several other cryptocurrencies are not vulnerable to the same problems. He notes, for example, that Monero and Grin are quasi-anonymous currency units, and that eventually, he thinks these properties might be meandering into the bitcoin space. Nonetheless, the number one virtual currency in the world is at serious risk until then.
The market, as it stands, is not a complete loss. Pan explains that tools such as Tap Root are likely to make massive improvements to the security of Bitcoin, while wallets such as Wasabi allow users to have higher levels of privacy.
Although staying completely anonymous on Bitcoin is difficult but not impossible, you can achieve pseudonymity. Not only that, but Bitcoin remains safer than conventional fiat currency.
