Yuval Rooz, co-founder and CEO of Digital Asset, raised concerns about privacy and regulation in cryptocurrencies. He argues that many modern blockchain networks do not address the real need for privacy. Therefore, this issue is considered a risk to both users and organizations. As blockchain becomes more widely used, this seems to require immediate attention.
Blockchain privacy in mainstream networks
Rooz said many blockchains are built to be almost completely transparent. It seems that the system was highly trusted when it was first introduced. But now users are faced with many unexpected side effects.
“Most of the current mainstream blockchain transactions are highly transparent;“Mr. Roos argued that this degree of transparency is not actually privacy, but rather a disadvantage because it allows many people to jump the queue and move on, as data transactions may occur before they are completed.”
In traditional markets, all trades are kept securely until they are settled. Rooz says blockchain networks should also aim to follow this method. Rather than exposing all actions and data in real time.
Transparency and privacy in blockchain
One of the key things Roos addressed was the misconception that the crypto industry is completely opposed to blockchain privacy. But most regulators aren’t actually against privacy per se, he said. They are more concerned about the idea of being completely anonymous as it can lead to more financial crimes.
“Regulators are against anonymity, not privacy.” he explained. This separation marks a clear difference between the two. Privacy is meant to keep users and businesses safe, but anonymity can take away liability if something goes wrong.
Balancing regulations
Ruth argued that the answer to this problem is not a choice between the two. Rather, we need to design systems that are fair to both privacy and regulation. A well-structured framework that not only hides sensitive information from the public, but also makes it accessible to regulators when necessary.
That’s why he developed blockchain primarily focused on privacy. It also recently secured $135 million in funding due to US legislation supporting blockchain, such as the GENIUS Act.
This perspective of Rooz shows that the theme of privacy in the world of cryptocurrencies is changing. Rather than viewing blockchain privacy as an issue, networks are now treating it like a necessity.
