The problem with the public blockchain is that all transactions are visible to all users. Not only financial transactions, but also attendance protocols, tokens, and NFTs. Vitalik Buterin has already found a solution, but its implementation faces clear challenges. There are concerns about the operation of hidden addresses and their integration with the public system.
Why Transaction Anonymity Is Needed in Blockchain
It’s very simple – any coin holder is always interested in their anonymity. It’s clear that transferring assets between two addresses occurs through creating a transaction between them. But the problem is that all these transactions can be tracked. The Ethereum founder proposes to activate a mechanism where the generated address between the sender and receiver will be hidden, not public.
It is technically feasible to do this. And Vitalik Buterin is already working in this direction. However, there could be problems with implementation. Privacy is unlikely to be welcomed by intelligence agencies that monitor all global asset movements. Primarily, this concerns terrorism financing. It is unknown how this will all end, but the idea of transaction anonymity has received support from most asset holders.
