The blockchain privacy problem
Imagine your bank statements, social media likes, and web history plastered on a billboard. Today, everything you do on-chain is public for the world to see.
Blockchains are inherently transparent, meaning every transaction is visible for the world to see. Financial history, account balances, and transaction details become public knowledge, posing significant privacy and security risks to individuals and businesses.
Many blockchains operate on a pseudonymous basis, allowing users to hide behind alphanumeric addresses. However, once an address is linked to an actual identity, the cloak of pseudonymity falls away. All past and future transactions connected to that address become easily traceable.