How Bitcoin’s Technology Pertains To Privacy
It is no longer news that the popular bitcoin with all its amazing features is not as anonymous as people tend to believe.
The fact is that the coin is quite pseudonymous because its transactions are susceptible to being monitored to certain users by government agencies as well as intelligence agencies.
However, the privacy Bitcoin offers its users have been continually increasing.
This is because some coin mixing services and even add-ons have successfully provided more users with the type of anonymity that Bitcoin cannot provide. But, as a result of Bitcoin’s enhancing privacy, there is the possibility that it might weaken all other privacy Cryptocurrencies
Moreover, if Bitcoin should be able to provide anonymity plus a store of value that is much more superior than what it has currently, it will potentially result in the altcoins mentioned above to practically wane out of existence.
This is because they will be used less, their community support will be reduced, and growth will decline as well.
All these imply that it is possible that bitcoin can stand as a threat to these privacy boosting coins. But, the developers from both the sides of Altcoin and Bitcoin are currently claiming that all these are unlikely.
On the one hand, diverse privacy coins provide much better technological advantages when compared to Bitcoin, and on the other hand, the crypto market is actually not a zero-sum game.
This means that there is enough space for more than one coin to be popular and also have a vast user base.
Bitcoin’s Stride To Privacy
Bitcoin can make use of a protocol known as MimbleWimble that makes use of a mixture of zero-knowledge proofs as well as mixing in a bid to allow transactions that are fully transparent but can be adequately verified.
This protocol is being used by Grin Altcoin, and there is a possibility that some applications of it can be an extra option for bitcoin later in the future. However, if it is not used, another technology that has the potential to be used is the schnorr signature.
Majorly, these will enhance the scalability of Bitcoin through aggregating diverse transaction signatures into one.
However, they all have their positive privacy implications because they make it simpler and much more affordable to utilize mixing services like CoinJoin.
When collected as a whole, the addition of both MimbleWimble and Schnorr signatures will actually make Bitcoin to be much more private, and it will push the other privacy coins that are making headways to the sidelines.
Since 2019 began, Bitcoin has done its best to rise by more than 108% in its value. It rose from an estimated $3733 to about $8000.
However, the coin keeps on attracting both interests and investments. All these have the prospect of working in its favor because it will be adding more privacy features in the future.
To Wrap It Up
Even if the privacy of Bitcoin is not really perfect, with time, they will get there…..