The inherent transparency of public blockchains, considered one of the main strengths of the technology, has become a key obstacle for institutional adoption in the Web3 ecosystem. Large institutions, from banks to technology companies, have indicated that exposing sensitive information such as workflows, payments, and financial balances not only compromises their business strategies but also exposes them to risks such as cyberattacks, asset price manipulation, and unfair competition. This dilemma underscores the urgent need for technological solutions like zero-knowledge cryptography and data obfuscation tools that allow for privacy in transactions without sacrificing the integrity of the blockchain.
The lack of institutional privacy affects not only the adoption of Web3, but also jeopardizes global economic stability. While transparency benefits retail investors by reducing fraud, the manipulation of maximum extractable value (MEV) and the possibility of malicious actors exploiting public information amplify systemic risks. Initiatives like Chainlink's privacy tools and pioneering experiments by institutions like ANZ Bank seek to balance this equation. An effective solution would not only unlock massive institutional participation in the crypto space but also solidify Web3 as a global economic engine, capable of providing innovation and security to all sectors.