Andreas Antonopoulos, author of the book Mastering Bitcoin and famous bitcoin evangelist, claims that bitcoin's dominance will be threatened in the next few years due to privacy concerns.
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Design and substitutability: important factors for long-term success
At the Deconomy Summit in South Korea, Andreas Antonopoulos shared his views on the future of Bitcoin based on the unresolved privacy issues of Bitcoin. Andreas said there are two major problems with Bitcoin. The first is the user experience, which is a very tricky and controversial issue for users who are used to traditional banking. He said:
“The ease of use of cryptocurrencies has not reached the same level as other financial services, so the motivation for using cryptocurrencies is not too strong. To a large extent, the adoption of cryptocurrencies is still limited to countries that have suffered disasters. In the country, due to the crisis, the difficulty of using cryptocurrency is lower than the difficulty of not using cryptocurrency. Therefore, it has found a suitable location."
Blot analysis breaks the user's privacy and the value proposition of cryptocurrency
The second issue is substitutability, which is also the most important. Antonopoulos said:
"Contaminated cryptocurrencies are very disruptive. If you break the substitutability and privacy of Bitcoin, you destroy Bitcoin. It is possible to attack Bitcoin in ways we haven't seen before."
Antonopoulos acknowledges that the future of Bitcoin depends on the developer's development speed. They regulate the implementation of new privacy protocols, they can implement new code to increase the level of security, or disappear from the stage along with other achievements of the privacy currency. He said:
“There are a series of solutions here. The question is, can we bring these to the bottom without triggering another political divergence… You can see that Bitcoin is moving rapidly towards privacy, otherwise it Will be replaced by other privacy cryptocurrencies."
What is the issue of the alternativeity of Bitcoin?
Substitutability refers to the ability of a given exchange token to survive in an unethical environment. Obviously, due to the nature of cryptocurrencies, many cryptocurrencies may be referred to as "dirty" in some way. Big companies have developed tools to track transactions across different blockchains.
For example, the “Crystal” division of the Bitfuty Group presents its blockchain analysis tools to law enforcement and companies for sale. It allows detection of "dirty" cryptocurrencies, which is important when your company has a large number of customers and strictly follows the KYC/AML policy. These tools are often criticized by prominent participants in the field of encryption because they undermine the core features of money.
What cryptocurrency can replace bitcoin?
In the worst case, Bitcoin has almost no competitors, and Monero, Zcash, Bitcoin Cash, Ethereum Classic, etc. are not enough to shake its position.
Monroe is known for increasing transaction privacy and is used as a payment method in many dark market markets. Zcash can choose to use the zk-snark protocol to prevent transactions from being analyzed by third parties because they are too simple. As for Bitcoin cash, it has implemented the Schnorr signature and is still waiting for an update to the Avalanche protocol. As described by Amaury Sechet, BCH ABC's lead developer, the avalanche agreement will allow for the expansion of BCH's trading capacity, anonymity and ZeroConf TX's resistance to double-flowering, all of which will be completed by 2020.