Will privacy become the ultimate moat in the encryption field?

Question

[BitPush] Ali Yahya, an investor at a16z Crypto, recently put forward an interesting point - privacy will be the most critical competitive barrier in the encryption field.

Thinking carefully, it does make sense. For global finance to truly go on-chain, privacy cannot be overlooked. Yet, most blockchains today seriously lack this functionality. Many chains still treat privacy as a patch, which needs to be addressed.

The most painful aspect is the asymmetry of cross-chain interactions. Asset cross-chain transfer? Easy and pleasant. But privacy cross-chain? The difficulty is directly maxed out. This creates an interesting contradiction - wanting both a cross-chain ecosystem and privacy protection, but many projects simply cannot coordinate the two.

Because the demand for privacy in real-world application scenarios is really urgent, in the future, it is likely that a few chains that excel in privacy will capture the majority of the market. These privacy chains are expected to occupy a major share of the encryption market.

NFTRegretter · Accepted Answer

Can privacy chains really dominate the world? I always feel like this is not that simple...

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The hurdle of cross-chain privacy is that the current solutions are too disappointing and simply not enough.

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It sounds good, but when it really comes to letting users choose between privacy and speed, most would still prefer speed, right?

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In my opinion, the privacy moat is just like the decentralization of the past, it sounds beautiful, but the implementation is all about compromises.

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Which privacy chains will split the big pie? Let&#39;s survive first.

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The demand for privacy in real applications vs. the pressure of regulation, which do you think will win? I bet on the latter.

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Ali is not wrong, but the problem is—who has really achieved privacy? Not a single one at this point.

ContractExplorer · Answer

Privacy has been talked about for so many years, but there are still very few chains that do it well... Cross-chain transfers are so smooth, why is it disappointing when it comes to privacy?

BloodInStreets · Answer

Sounds good, is the privacy chain the next value pit? I think it&#39;s mostly just conceptual hype. The hurdle of cross-chain privacy hasn&#39;t even been figured out technically, and a bunch of projects are boasting wildly, only to turn around and Be Played for Suckers.

DegenMcsleepless · Answer

Can privacy chains really become a moat? I doubt it, large institutions still prefer transparency.

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Who will fill the gap for cross-chain privacy? It feels like everyone has just bypassed it.

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Sounds good, but the current privacy solutions are too expensive to afford.

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A few chains monopolizing the privacy market? That sounds nice, but in the end, they will still be sanctioned by regulators.

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Privacy is indeed a necessity, but there are too few projects that can actually be implemented.

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Every day people talk about privacy moats, but I still haven&#39;t seen a killer app.

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This logic is ridiculous, crossing assets is easy but privacy is hard? Nonsense.

BlockchainDecoder · Answer

From a technical architecture perspective, privacy cross-chain is indeed a false proposition. According to on-chain data statistics from 2023, currently, there are no more than five public chains that support native privacy, but the TVL proportion of these chains is actually shrinking. It is noteworthy that there is a significant discrepancy between market perception and technical implementation.

Will privacy become the ultimate moat in the encryption field?

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