Ethereum: Trust in anonymity
The ancient debate between anonymity and confidence has long been a controversial topic in the cryptocurrency community. While many bitcoin fans praise anonymity as the cornerstone of their faith, I would argue that this approach is far from the greatest force of Bitcoin or Ethereum. For me, anonymous transactions are more liability than an asset.
A brief history of anonymity on Bitcoin
In the first days of Bitcoin, anonymity was indeed an important feature. The initial white book Satoshi Nakamotos introduced a peer-to-peer decentralized network, with minimal state supervision. However, when cryptocurrency has gained popularity and the increased regulation exam, anonymous transactions began to disappear.
The introduction of the separate witness (segwit) in 2017 was a significant change to additional transactions. This change has made it possible to become bitcoin “more on the chain” and to be less dependent on intermediaries by the suppliers in the third, such as banks. However, this has also introduced new risks, including increased regulatory examination and higher transactions.
The case against anonymity
What exactly is the problem with anonymous transactions? On the one hand, they are naturally insecure. If a transaction is characterized as “unconfirmed”, this means that the sender has not yet checked the identity or location of the recipient. This leaves the recipient susceptible to fraud, phishing attacks and other forms of operation.
In addition, anonymous transactions are often based on opaque payment processors (PPS) that can be used for illegal activities, such as money laundering or terrorist connections. These PPS can also save sensitive financial information about their customers and can make them attractive for hackers.
Alternative: Trust -based systems
In contrast, confidence -based systems, such as Ethereum, should give priority to transparency and security before anonymity. Using a decentralized network by validators to check the transactions, Ethereum ensures that all the parties involved in the process are completely identity and financial information of the other.
This approach not only reduces the risk of fraud and exploitation, but also promotes a more collaborative community. If individuals entrust themselves to their financial data, they are more responsible and participate in an economy in a legitimate way.
Ethereum 2.0: Next generation
The latest introduction of sharing technology (EIP-1559) is a considerable step to build a more reliable system. By dividing transactions into smaller, manageable parts (called “chunks”)) Ethereum creates several parallel chains that can process transactions in parallel.
This design allows increased scalability, security and transparency, which makes it an attractive option for users who appreciate a high degree of anonymity and still want to benefit from the decentralized nature of cryptocurrency. With Sharding, Ethereum can support thousands of knots, making it a more robust platform for everyday use.
Diploma
While Bitcoins actually characterized by an emphasis on early anonymity, this approach has proven to be disadvantageous for its long -term success. The risks associated with anonymous transactions far exceed the perceived advantages, and confidence -based systems such as Ethereum are suitable to promote the behavior of responsibility and to promote a lively community.
Finally, it is not if Bitcoin is “anonymous” – it is about how we use it. By prioritizing transparency, security and confidence, we can build a more fair and successful cryptocurrency ecosystem to benefit from everyone involved.
