Transparent financial systems won’t get real traction, blockchain exec argues

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As conversations about privacy intensified with the recent Litecoin (LTC) upgrade, called Mimblewimble, and regulators’ reaction to the feature, Adrian Brink, founder of blockchain protocol Enoma, weighed in on the topic and told Cointelegraph his shared perspectives.

According to Brink, privacy is an essential tool for democracy because it prevents giant corporations from targeting people and isolating them into separate bubbles. Anoma’s founder told Cointelegraph that:

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“The fact that you have surveillance capitalism allows for subtle targeting to the extent that it can put people in their own filter bubble that destroys democracy very quickly.”

Brink believes that blockchain technology has a solution to this issue. He added that the space has been able to tackle financial privacy issues and then eventually moves on to address general data privacy in the future. Brink said:

“There is a serious effort to solve digital privacy as a lot of resources are being spent innovating around zero-knowledge proofs and using ZKP as a privacy-preserving technology.”

Anoma’s founder also argued that privacy-focused projects could drive cryptocurrency adoption into the mainstream. Brink explained that using a transparent system “basically means your neighbor can see how much money you have, what your daily priorities are.” This is why Brink believes that a transparent financial system will not gain traction.

related: Binance ends support for anonymous Litecoin transactions

Earlier in June, several exchanges in South Korea delisted LTC due to its new upgrade, MimbleWimble, which focuses on privacy. Upbit, along with four other exchanges, removed the coin from its platform, citing Korean financial regulations prohibiting anonymous trading.

Despite privacy conflicts with regulators, privacy is one of the innovations that drive decentralized finance.[डीआईएफआई]The community has hope in the future. In a thread on the DeFi subreddit, one user shared that he believes projects focused on privacy could be a catalyst that drives widespread adoption.