Today, someone asked about the privacy protection of a chainless platform. It is a common question, and I will answer it here.
The current situation of cryptocurrency
The Bitcoin ledger is transparent, and anyone can see the amount of money in the ledger. But it is unknown to whom it belongs. How much money does the other party have by checking the account? According to the description of the Bitcoin white paper, the address is cleared after the sender transfers the money. The unspent coins are saved in a new address as “change.” In this way, it is impossible to find out the number of coins of the other party by checking the other party’s address. This design is very clever and precisely the same as the change of paper money. It completely simulates the cash model. That is to say, privacy is absolutely protected.
With the development of cryptocurrency, our current Bitcoin wallet address will be exposed after external transfer. A Bitcoin browser can check the number of coins at the address.
The same is true for Ethereum. The number of tokens at the address is exposed after the deposit account transfers.
What do you do if it is not exposed? There must be several Ethereum accounts or several Bitcoin address wallets. As long as the transfer is on the chain, it will cost money, and it is not easy to remember, so most ordinary users have an Ethereum account or a Bitcoin address wallet.
Bitcoin and Ethereum accounts will be exposed to specific people. For example, through transactions, tentative phishing techniques are used to grasp the amount of coins in the other party’s address. With the frequent transfers, this data exposure is infinitely spread. For example, the Ethereum Foundation account is public; anyone can check it. The Ethereum Foundation is under public supervision, and privacy protection is no longer here.
It is the current status of cryptocurrency privacy protection. Therefore, neither Bitcoin nor Ethereum can achieve the privacy protection model designed by Satoshi Nakamoto.
How do banks protect privacy?
Banks do not open account inquiries to outsiders, and internal personnel have confidentiality requirements under the Banking Law. Only a limited number of people know the privacy of customers. Is the privacy protection of banks better or the privacy protection of cryptocurrencies better? Using the method of the Bitcoin white paper, it was true that Satoshi Nakamoto accused banks of poor privacy protection. Now, it is not true.
Now, each has its own merits. From the perspective of limited diffusion and unlimited diffusion, banks have good privacy protection. The flaw of banks is that their ledgers are not as transparent as cryptocurrencies. How to maintain a transparent ledger without exposing customer privacy? It is the problem that the chainless system needs to solve.
Problems that the chainless platform needs to solve
The general ledger of the chainless platform is transparent. Anyone can download and use the chainless browser to check the amount of currency in the general ledger ID account.
The chainless system has four transfer modes: ID account transfer, mobile phone number transfer, email number transfer, and contract transfer.
Contract transfer can play the role of dispersing general ledger assets. When an individual transfers to own contract account, there is no transfer fee. The contract account can be external, but there is no situation where a hacker clears all your assets due to authorization errors. And the contract account and the general ledger ID account are separate. The design of the contract is very flexible. There is no inconvenience caused by two driving modes for one account.
Email transfer is anonymous and belongs to anonymous transfer. It does not expose your total assets.
Mobile phone number transfer is a real-name transfer and does not expose your total assets.
The biggest flaw of ID account transfer is the same as Bitcoin and Ethereum. You can know how much money you have after one transfer. If this method is not adopted, since Chailess has no counter staff and account book processing staff, the scope of diffusion is smaller than that of banks, and the degree of privacy protection is slightly better than that of banks, exceeding that of cryptocurrencies. The account book is public and has the same transparency as cryptocurrencies.
It must be pointed out that chainless cannot achieve the privacy protection described in the Bitcoin white paper.
Similarly, chainless platform users can choose to make their ID accounts public, and there is such a demand in real scenarios involving the public’s right to know.
In addition, chainless also supports on-chain transfers, which means support for anonymity. However, in the on-chain state, all the shortcomings of cryptocurrencies exist.
The chainless system supports anonymous registration and transfers, but anonymity is not supported in some chainless payment and transaction applets. Some require KYC in addition to real names.
Our view is that there is a demand for anonymity, but real names dominate. In recent decades, we have not seen the possibility of anonymity dominating. It is difficult to defeat real names without overcoming the proliferation of scammers in the anonymous world.
Learn from others and do not stick to dogma. Whether it is right or wrong is subject to market testing.
