Lately I have noticed on Twitter (X) that there has been quite a few people being outspoken about the new COI V2 privacy token. They believe that crypto is all about openness and being transparent so they feel it is not a good idea. There are too many bad actors around to be fully transparent and there is a big difference between being anonymous and privacy.
When we are discussing crypto and anonymity we think of bad things and rightly so because most who want to remain anonymous are up to no good. They end to have something to hide and are trying to cover their tracks and why certain privacy tokens have been removed from CEX's and are only available on DEX's.
If you want to remain anonymous when purchasing an item you would use cash in order to not leave a trail and I have done this many times myself. Crypto has it's limitations because there is always a footprint left behind no matter how smart you may think you are. Cash will always be king if you want to stay hidden in the shadows and why crypto cannot replace cash if you are doing illegal activity. Monero and ZCash were delisted of Binance last year due to illicit activity concerns as it holds a similar power to cash being untraceable.
Tornado Cash was an anonymous tool that was shut down for obvious reasons as it allowed anyone to deposit crypto and receive another type of crypto sent to another wallet address. Anyone seeking those types of services is up to no good and one can think of what type of organizations would want to use this type of money washing. There is no other word for it and it is what it is.
Privacy on the other hand is vastly different from being anonymous and you can think of many professions where we would like our details to remain confidential. Doctors, lawyers, business and the list could go on because we would not like to share certain parts of our lives for the world to see and rightly so.
What COTI does is allow those certain parts of the information to be shown to those who we are willing to share that with and nothing sinister is happening behind the scenes. WEB 3 and the future needs privacy because everything is going to be using this in the future. If there was no privacy allowed then it would not be fully adopted because it would not serve the purpose for many industries and professions.
Above is a BTC transaction showing the two addresses and the amount involved. Would a business be happy to share this type of information and the answer would be a firm no. This is confidential and no one else has the right to know how much you spent and in the real world this would be classified information between the two parties involved. The COTI V2 token will not hide the addresses, but will encrypt the amount or message sent to a patient or a client of a lawyer. This is where the confidential part needs to remain confidential and is not the same as anonymity.
Where I see the backlash coming is those that are using the MEV bots to make money off crypto users by knowing what they are doing. These bots make money from knowing the transactions and front run the deals skimming a small percentage for themselves and they have no right to be making money from knowing other peoples business.
As we know MEV Bots is big business reportedly making billions every year from other peoples money and I expect within the next 24 months this will seize to be a money making opportunity. Encryption will see that the bots can no longer function due to hiding the information these bots so desperately need to function.
Yes we want the blockchain to be transparent but at the same time it cannot reveal every detail of whatever that transaction may be. Everyone has the right to confidentiality and privacy and this is not illegal, but a standard human right.