The Ultimatum As To What Government Regulation Means For Privacy-Focused Cryptocurrencies- Part 2
Continuing from the previous post, here is the discussion on the reasons behind governments imposing cryptocurrency regulation. Read the rest of the discussion here.
What Are The Use Cases For Privacy-Focused Coins
Continuing from the previous post, here are the major factors behind the privacy-focused coins that help the crypto investors to gain much more than expected. It is here that we discuss the idea behind imposing the regulations by the governments. Here we go.
While it is of course that at first glance the protocols and examples provided above might make it seem that criminal activities and actors are the primary use cases and users for privacy-focused coins. Whereas while one considers current regulations for commercial transactions, the utility of privacy features dramatically expands.
Thereby comes a new class of coins that bridge the gap between the anonymous world of cryptocurrencies as well as the real world of business applications and commercial transactions has emerged to take advantage of this space. Therefore as an example, Ripple and ZCash have included functionality enabling disclosing of transaction data and identity metrics to comply with regulatory agencies.
The truth is that hereby while Dash’s PrivateSend feature comes to be optional, it also has the meaning it can be utilized for transactions that users of the cryptocurrency would like to keep hidden from the public blockchain. Therefore, as an example, rent payments and salary information can be hidden from other users. Thereby according to the CEO of Dash, Ryan Taylor, privacy is important for many practical reasons thereby including user safety, as we believe it is an important aspect to incorporate into our solutions. However it is also a safety issue for users that could be targeted by criminals becoming aware of users holding by tracing their transactions.
Thereafter the noted cryptocurrency investor, Barry Silbert believes that at a cryptocurrency conference recently he said, that around the world, people will want the money that is not accessible to others. He comes as an investor in ZCash which is a coin that is being tested by Wall Street banks for transactions. Furthermore, according to co-founder Rob Viglione of the ZenCash which is a cryptocurrency focused on privacy and security, he said that such coins also empower individuals in repressive political regimes, along with examples that of Venezuela and Zimbabwe have reportedly being witnessed a surge in the use of these cryptocurrencies as their economies have been deteriorating as in fact users in these countries are willing to pay a premium to own Bitcoin.
It was found to be according to Viglione that the competitive pressures and the market demand are likely to push most of the cryptocurrencies projects to adopt the strong privacy primitives adding that high encryption techniques enable masking of user and transaction identity that will likely be pervasive across future money.
But What Is It All About Government Regulation?
The next discussion is on the government regulation that is mostly focused on making virtual currencies accountable and transparent in their transactions. Thereby it could also have an adverse effect which is on cryptocurrency valuations. According to Sheffield Clark, CEO of Coinsource, and operator of Bitcoin ATMs, increased scrutiny may make them a riskier investment for more traditional traders/investors. It was according to him that he said these privacy-focused coins will surely have use cases in the places with restrictions on personal freedom and for individuals interested in transferring funds to family and friends or engaging commerce without state scrutiny. It is here that the investors claim to have mined the coins that are securely stored in blockchain technology-based storage systems.
While there is the market size for such use cases, it is still unknown whether there is a good chance as the privacy might become a key selling point or cryptocurrencies in the future. Hence it is that the investors are keen on keeping the crypto away from government regulations.
As explained by Viglione of ZenCash, the competitive pressures and market demand are likely to push more cryptocurrency projects to adopt strong privacy primitives. It is similar to https that has slowly replaced https across the Internet, zk-SNARKS, which is a zero-knowledge cryptography protocol used in ZCash, or other high encryption techniques that will likely be pervasive across future money.
Concluding The Discussion With A Few More Facts
As the cryptocurrency moves higher in the economy index to provide safe money storage, it is sure that the investors are keeping their money in safe storage. The main attraction of cryptocurrency is this safety assured by the blockchain technology with the decentralized ledger feature. Here is the reason why many developers are engaging in crypto mining that helps them deal with the current issue that they face which is of hackers, theft, and frauds.