"Pseudonymous" Cryptocurrencies Explained - Crypto Whiteboard 101

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Avatar for The.Part.Time.Economist
Written by
3 years ago


The myth that cryptocurrencies are "untraceable" was born during the early days of cryptocurrency, but unfortunately persists today. In today's article , I'd like to clear up some of the confusion and explain the reality of "pseudonymous" cryptocurrencies.

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Comments

It is probably one of the biggest difference of crypto payments to regular bank transactions.

If one pays with crypto in an online shop and indicate a delivery address, then shop owner will see all the transaction on the blockchain explorer. It is not necessary bad as there is similar reputation tracking on eBay etc. But surely not that we would like full transparency and deliver complete picture with one minor purchase. That may probably limit payments in crypto and crypto adoption or public address has to be changed often via intermediate exchanges.

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User's avatar Swca.ch
3 years ago

Very well said. That could be a bit of a double edged sword because on the one hand, we want people making the "everyday purchases" to drive crypto mainstream, but that would also mean that every one of those points of sale would have access to the whole transaction history which could pose a privacy concern for some.

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User's avatar The.Part.Time.Economist
3 years ago

I rather think what new use cases can be based on 'blockchain features'. Not replacing payment systems that work better and better.

Where these visibility and transparency can be an ultimate plus. Maybe some voting systems in communities, although elections are probably not possible as these have to be anonymous and with signature proof.

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User's avatar Swca.ch
3 years ago
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