Destroying myths about blockchain shared send.

Blockchain shared send - stereotypes and facts.

Bitcoin has been considered an asylum for criminals for a long time bitcoin but now it becomes obvious that the movement within the blockchain is not hidden from others. Anonymity and confidentiality of blockchain are only relatively strong: addresses at best provide pseudonymity and balances are completely public.

Companies like Elliptic and Chainalysis turned the expertise of the blockchain into their business and as the crypto-market capitalization increases, the need to track the movement of capital only grows. This fact spurred the popularity of cryptocurrency in 2017 - many of them rose in prices and increased the volume of operations. It may seem difficult for beginners to adapt to the realities of the blockchain technology; but it is important to remember that we are still at the early stages of its development and in order to understand what is happening, you need to deal with a handful of key problems and projects of interest.

Practicality against ideology

Destroying myths about blockchain shared send.

In the world of blockchain and cryptocurrencies, there are many ideological contradictions. In terms of confidentiality, the most important question is whether secrecy methods should be enabled by default. The difference in approaches is perfectly demonstrated by two well-known cryptocurrencies - Monero (XMR/USD) and Zcash.

Monero supports maximum privacy by default. This feature is highly appreciated by key developers and the community. In turn, Zcash technology allows you to conduct both private and transparent transactions. And there is a good reason why both models develop hand in hand.

Including privacy settings by default may seem like an obvious solution but the experience of Zcash shows that in some cases (for example, corporate and personal banking) the protection of personal information is abetter fit but also requires audibility. Recently, JPMorgan has built Zcash's data protection technology into its Quorum blockchain and as companies' interest in privacy increases, we will see new projects in this area.

Researchers found that 2.5% of all transactions with bitcoins were done using the "shared send" algorithm and about half of them can be untangled without powerful computing equipment. According to the document "Shared Send Untangling in Bitcoin" this type of anonymization does not provide sufficient protection allowing you to establish a connection between the sender and the recipient in half the cases. The blockchain shared send method is one of the main methods of anonymization in the Bitcoin community. Accordingly, the researchers say that the problem of untangling mixed operations is of great practical importance.

Practical considerations are important in addition to ideology. Operations with increased secrecy occupy much more space in regards to the blockchain. It is difficult to justify the additional load on the blockchain in an environment where there is a problem of scalability and speed. Further breakthroughs in mathematics and cryptography will surely make it possible to achieve the optimal balance between secrecy, efficiency and trust. So far, we have to make certain sacrifices.


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