How to strike a balance between blockchain transparency and privacy: Nansen CEO

The satellite whitethorn beryllium moving successful a absorption wherever radical are much comfy successful having their assets and ownership disposable for everyone to see, according to Alex Svanevik, the CEO of blockchain analytics steadfast Nansen. 

In an interrogation with Cointelegraph’s Zhiyuan Sun, Svanevik highlighted however a equilibrium betwixt privateness and transparency whitethorn beryllium attained successful the satellite of blockchain analytics. According to Svanevik, it’s not imaginable to get the entirety of some successful blockchain. He explained that:

“You cannot get 100% transparency and 100% privacy. I deliberation galore of america privation to person arsenic overmuch transparency arsenic imaginable connected firm entities, exchanges, protocols, etcetera. But we expect immoderate grade of privateness astatine the idiosyncratic level.”

Because of this, the Nansen CEO believes that nary 1 would beryllium consenting to spot themselves connected either of the extremes. Svanevik said that being afloat backstage would marque radical miss retired connected the transparency expected retired of firm counterparties. On the different hand, the enforcement describes being afloat transparent arsenic an uncommon stance arsenic radical mostly privation to person immoderate benignant of privacy. 

Sharing his perspectives, Svanevik said that there’s a generational facet to the contented of privacy. The enforcement believes that the younger procreation cares little astir the privateness parts of crypto. “If you conscionable deliberation astir however they usage societal media, right, TikTok, Instagram, Snapchat and truthful on, they thin to beryllium precise unfastened successful sharing astir their lives,” helium said.

Meanwhile, astir 30 years ago, Svanevik said that radical would beryllium “quite shocked” if they saw however radical are putting their full lives retired connected societal media. Because of these, the enforcement predicts that the satellite whitethorn beryllium much comfy with much plus transparency successful the future.

“So, if you own, you know, NFTs, if you ain crypto, you mightiness privation to amusement that disconnected to people. You mightiness really privation to enactment that connected your societal media, which is what radical are progressively starting to do,” helium explained.

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When it comes to solving the trade-off betwixt privateness and transparency, Svanevik believes that projects person to travel up with settings that tin spell betwixt some spectrums. He said that they “probably person to travel up with thing wherever successful antithetic circumstances you opt for much privateness and successful different circumstances, you opt for much transparency.”

The Nansen CEO explained that determination could besides beryllium immoderate regulatory implications erstwhile it comes to balancing transparency and privacy. Svanevik said that regulators mightiness not beryllium comfy with idiosyncratic being capable to nonstop $500 cardinal successful assets successful full privateness done protocols similar the sanctioned crypto mixer Tornado Cash. However, crypto regulators whitethorn beryllium lenient erstwhile it comes to radical sending assets worthy thousands of dollars.

While helium hasn’t seen a protocol that “strikes the close balance” betwixt the 2 things, the enforcement believes that successful the adjacent fewer years, idiosyncratic volition travel up with a protocol that volition beryllium capable to bash truthful and beryllium acceptable to regulators arsenic well.

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