Publicly available blockchains lack privacy, says Arkham CEO
Crypto analytics platform Arkham is facing backlash from the crypto community over a new program that incentivizes people to reveal the identities behind anonymous blockchain addresses. In a Twitter Spaces conversation, Arkham CEO Miguel Morel defended the lack of privacy in most blockchains, stating that publicly available blockchains are the worst way to keep private information private. The program, sarcastically called “DOX-to-Earn,” allows anyone to set bounties for revealing crypto address identities. Arkham markets the program as a way for traders to gather financial data and root out perpetrators of thefts and exploits. However, critics are concerned about potential privacy and misidentification issues.
Key Points:
- Publicly available blockchains do not provide privacy
- A lack of privacy is inherent in how most blockchains operate today
- Arkham’s bounty program allows for the revealing of crypto address identities
- Arkham defends the program as a way to gather financial data and combat thefts and exploits
- Critics are concerned about privacy and misidentification issues
Privacy and blockchains
In response to the backlash, Morel highlights the misconception that all blockchains are inherently private. He explains that popular blockchains like Bitcoin and Ethereum do not provide complete anonymity unless users utilize services like Tornado Cash, which has faced restrictions from the U.S. government. Morel emphasizes that speed, ease of use, and asset ownership are the main advantages of cryptocurrency, rather than complete anonymity.
Making money off of information
Some critics question how Arkham will judge the accuracy and relevance of the information added to its platform. Morel assures that not all bounties or address labels will be allowed, as the platform caters primarily to traders and hedge funds who are interested in information about large token transactions. He clarifies that information about personal matters or irrelevant details will not be approved. Morel also mentions plans to decentralize bounty moderation decisions in the future.
Controversies and accusations
Arkham, which has been live for less than a year, has already faced multiple controversies. In addition to the backlash over its bounty program, the company was accused of leaking user email addresses. These incidents have further fueled criticism and skepticism towards Arkham and its management of user data.
Hot Take:
While privacy is a core principle in the blockchain community, publicly available blockchains inherently lack privacy. Arkham’s bounty program, although controversial, aims to provide financial data and combat thefts and exploits. However, concerns regarding privacy and misidentification need to be addressed to ensure the program’s effectiveness and protect user information.
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