In a recent discussion, Changpeng Zhao, often referred to as CZ, pointed out that the lack of onchain privacy could hinder the widespread acceptance of cryptocurrencies for transactions. This transparency, while typically seen as a positive trait of most cryptocurrencies, could deter businesses from using crypto for payroll and other expenses. “Lack of Privacy may be the missing link for crypto payments adoption. Imagine a company pays employees in crypto onchain. With the current state of crypto, one can easily determine individual salaries by checking the ‘from’ address,” Zhao explained.

As privacy concerns resurface in the crypto landscape, Zhao stresses that the shift towards onchain privacy must gain traction. The potential impact of transparency on physical security adds another layer to the issue, as highlighted in his previous discussions with Chamath Palihapitiya.

Avidan Abitbol, a former Business Development Specialist for the Kaspa cryptocurrency project, echoed Zhao’s sentiments, stating that without safeguards for transaction privacy, businesses will hesitate to adopt Web3 or blockchain technologies. Abitbol noted that sensitive transaction data can reveal vital internal information, putting companies at risk.

Eran Barak, ex-CEO of Shielded Technologies, warned that as AI technology advances, centralized databases could become prime targets for hackers, emphasizing the urgent need for robust onchain privacy measures.

These discussions signify a growing awareness in the crypto community regarding privacy as a critical component for future innovation in the space.