Everyone who has heard the word cryptocurrency, probably knows about the anonymity that they provide. At its early stage, bitcoin was often used in the market as a means of payment and exchange, where it earned a reputation as a “black” or “offshore” currency, allowing you to quickly and anonymously move large amounts of money.
Who knows, would have developed the bitcoin network to today’s scale or not, if not global support for bitcoin resources such as the now — closed Silk Road-an illegal platform or black Internet market for the sale of drugs, weapons and other illicit goods.
Anonymity needs to be earned
But when we talk about anonymity in bitkin, we have to understand that the network is not confidential, transparent and open. Any payment can be tracked and built a chain of money transfer, which can contribute to the calculation of the user wallet.
Although Bitcoin wallet does not identify the user by his passport data, however, intelligence agencies use complex algorithms in order to calculate the attackers and find out who owns bitcoins. It’s real and in this case, none of what anonymity of speech can not go.
A person using bitcoins for personal purposes will easily become an easy target for intelligence agencies and other interested persons in the disclosure of a person. In the event that you pay for your bitcoin online purchase from your wallet and provide delivery details, you will most likely lose your anonymity by revealing to the person, in which case all your previous transactions made from your wallet will be compromised.
Bitcoin account virus WannaCry for a long time were under the supervision of the entire world, and remaining open to the study because of the clear device blockchain-network cryptocurrency. The attackers could not cash out the money without giving themselves away, so they were lying on account of for a very long time, until the criminals began to withdraw their short transactions to unknown account. As a result, the attackers managed to cash out the money, but bitcoins are simply lost in the network, running into different unknown accounts, becoming part of the further numerous transactions shattered into components that eventually mixed up and distributed among a huge number of participants in the network. Thus, a large amount of bitcoins simply melted, providing further chaotic movement of the cryptocurrency.
It turns out that bitcoin is not so anonymous. Moreover, as it becomes more and more a payment system in the world, there will be more and more systems and rules that facilitate identification and control of funds by government bodies and companies that collect personal data.
There are already companies engaged in blockchain research and the use of available data in order to serve the needs of tax commissions and special services. It is possible that in the future, we will be able to see how with the help of blockchain we pay, pass passport control at the airport, contact people and register their intellectual property and real estate.
On a catcher and the beast runs
The fact is that such a fundamental replacement of traditional methods of payment, insurance, communication and work with documents will bring openness and transparency not only in the activities of the government structure, but also in the lives of people. We can only imagine the further development of the industry of distributed registries, but one thing is clear today — the sovereignty of personal data is in our hands.
At present, there are networks that use available methods of cryptographic calculations to improve the user’s confidentiality and operations. One such network is DASH, whose wallet is built on the basis of Bitcoin core, whose network seeks to hide the path of transactions mixing and dividing the amount of components that go a long way “anonymization”. The coins of this cryptocurrency become the object of complex mixing manipulation with the help of masterful managed by volunteers. Volunteers for such work receive 50% of the miner’s earnings and transactions completely lose history, becoming faceless amount of money belonging exclusively to the recipient.
DASH uses a mechanism of decentralized governance. Decisions about the future development of cryptocurrency participate in the network and not just the developers. This method of control allowed to decide on the scaling of the unit up to 2 megabytes per 1 day. Recall that the bitcoin community took 3 years to solve this problem.
Decentralized management and anonymization of payments allow you to use this cryptocurrency without worrying about what someone will find out about your purchases on the Internet, in stores, how much money you have on offshore accounts or with whom you deal. The new payment method makes digital money really similar to cash, the costs of which are known only to you.
Anonymity is not a toy
If the network succeeds, or anyone comes up with a better way to solve the daily problems of payment, transfer, and sale with anonymous cryptocurrency, then we will see the heyday of the era of anonymity. It is possible that many institutions will oppose the use of a fully confidential network for payments, cautiously claiming the threat of terrorism and crime. However, as we know from experience with bitcoin, in this case, no one will be able to ban or disable all the network nodes and knock down the cryptocurrency.
With the increasing popularity of cryptocurrencies and their introduction into everyday life, a person can find a unique opportunity to choose a currency for payment.
I would like to note that this is a unique opportunity for the first time. Previously, a person was always constrained in the decision to use a particular currency. States are forced to use the national Fiat and do not allow to use the currency of international partners to pay.
This situation leaves little freedom for a person to choose the conditions of shopping. When in the future, you may be able to buy products in the store, paying an anonymous cryptocurrency without naming any name or address.
Such behavior will be followed by new thinking that will make it possible to understand the advantages of non-government-controlled money that ignores the pressure of the party and is resistant to hacking. People using cryptocurrencies take full responsibility, realizing that they interact with an Autonomous system of transactions that does not belong to anyone and is served by the Protocol. As soon as it becomes clear to people that in conditions of self-sufficiency it gets more freedom and opportunities, besides remaining protected and independent, people will have more to claims to conditions of service.
A person who realized that his money belongs only to him, that the functions of management institutions are replaced by automatic algorithms, impartial to any activity and choice — will feel the sovereignty, power and control over their own savings. People will think, why he uses a national currency, constantly at the risk of relying on the human factor, believing the beliefs of the bankers about the reliability, and to provide for their livelihood in foreign currency is subject to influence from the bustling private lives of the geopolitical situation in the country.
Preferences in anonymity and confidentiality of payments will be an essential condition for buyers who understand the impact of payment properties on interaction in the process of purchases and exchange. The value of independence from traditional currencies, regulatory institutions of financial systems has not yet been understood and studied enough. We can only imagine what the new way of interaction will lead us to and how it will affect the thinking, life and the kind of society in which we live.
The new current as a strong element breaks all the instruments of state influence on people with the help of Finance, freeing and leading people to understand their own currency-isolation. The current position of the new cryptocurrencies is still in the struggle for survival. However, strengthened bitcoin-as the leader of cryptographic distributed platforms becomes the guarantor of the movement of the locomotive of digital coins rushing to a new future, overcoming problems, creating and developing new technologies. Indeed, we are faced with epochal events that make us realize the importance of openness, open-mindedness and aspiration. Today’s projects, which are under development and are still influenced by States and large corporations, gather like-minded people. The crypto-currency community is becoming a large mass of people who have learned about another device of interaction. This is becoming an influential force that carries cryptocurrencies to implementation in larger areas.
Cryptocurrencies — a new reality, what will the world look like?
In fact, the introduction of cryptocurrencies into global circulation is as fundamental as the seizure of the world by the dollar economy and the subsequent pumping of assets. Perhaps the erased borders will be the last obstacle to the further expansion of the international economy, which will be another step towards globalization. In my boldest vision, cryptocurrencies can be the key to a world state, and maybe even to the emergence of virtual citizenship of virtual States that are not backed by territory. Blockchain, as a communicative environment capable of autonomously regulated, can become a prototype of a single computer that would perform the current functions of government agencies and would be free, accessible and open. The great leap forward is made by mankind, at some point realizing that it really needs to come to a more humane way of interaction, and I am sincerely glad to observe and participate in the study of the opening prospects, with the hope one day to notice how I dive into a whole new world