According to Cointelegraph, Alex Svanevik, CEO of blockchain analytics firm Nansen, believes that the world may be moving towards a greater acceptance of asset transparency. In an interview, Svanevik discussed the balance between privacy and transparency in the realm of blockchain analytics, stating that it is not possible to achieve 100% of both. He argued that while people generally desire transparency from corporate entities, exchanges, and protocols, they also expect a degree of privacy at the individual level.
Svanevik noted a generational aspect to the issue of privacy, with younger generations seemingly less concerned about privacy in the crypto space. He cited the openness with which younger people share their lives on social media platforms such as TikTok, Instagram, and Snapchat as evidence of this trend. Svanevik predicted that the world may become more comfortable with increased asset transparency in the future, with people potentially wanting to showcase their ownership of NFTs and cryptocurrencies on social media.
To address the trade-off between privacy and transparency, Svanevik suggested that projects should develop settings that allow for a balance between the two. He also acknowledged potential regulatory implications, with regulators possibly being uncomfortable with large, private transactions through protocols like Tornado Cash. However, they may be more lenient with smaller transactions. Svanevik believes that a protocol that strikes the right balance between privacy and transparency, while also being acceptable to regulators, may emerge in the next few years.