Alex Svanevik, CEO of blockchain analytics company Nansen, said the world may be moving in a direction where people are more willing to have their assets and ownership visible to everyone.
In an interview with Cointelegraph’s Ziyuan Sun, Svanevik highlighted how to achieve a balance between privacy and transparency in the field of blockchain analytics. According to Svanevik, it’s impossible to get both exactly at the same time:
“You can’t get 100% transparency and 100% privacy. I think a lot of us would like to have as much transparency as possible in terms of corporate entities, exchanges, protocols, etc. But we would like to have a certain level of transparency on an individual level. privacy.”
Because of this, Svanjevic believes that no one wants to put themselves in either extreme. Full privacy would miss out on the transparency expected by corporate counterparties, he said, and full transparency is an uncommon stance because people generally want a certain level of privacy.
Svanevik believes there is a generational element to the privacy issue, arguing that younger generations are less concerned about the privacy element of cryptocurrencies. “If you think about how they use social media — TikTok, Instagram, Snapchat, etc. — they tend to be very open about sharing their lives,” he said.
At the same time, Svanevik said that if people 30 years ago saw how people spend their entire lives on social media, they would be “very shocked.” As a result, he predicts that the world may be more willing to accept greater asset transparency in the future.
“So if you own an NFT, if you own a cryptocurrency, you might want to show that to people. You might actually want to put it on your social media, which is what people are starting to do more and more ,” he explained.
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When it comes to addressing the trade-off between privacy and transparency, Svanevik believes projects must come up with settings that can transition between the two scopes. He said they “probably have to figure out some way that in different situations you choose more privacy and in other situations you choose more transparency.”
Nansen CEO explained that there may also be some regulatory implications when balancing transparency and privacy. Svanevik said regulators may be uneasy about someone being able to send $500 million in assets with complete privacy through protocols such as sanctioned cryptocurrency mixer Tornado Cash. Cryptocurrency regulators, however, may be lenient on people sending assets worth thousands of dollars.
While he has yet to see a protocol that “strikes the right balance” between those two things, the executive believes that within the next few years someone will come up with a protocol that does that and also provides Agreement accepted by regulatory authorities.
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