IS THERE CRYPTO PRIVACY ONLINE?
The rise of the crypto-currencies and blockchain technology bring with it endless benefits and we see them as the next best thing since sliced bread. They may be the successor to the fiat system a game changer in the world of finance.
With this new technology brings new unknowns especially with the high level of transparancy blockchain technology brings. Our privacy are kept locked away by the custodian of our fiat dollars and protected by the government under privacy regulations.
But how does this work in the crypto-world?
The opposite of privacy is transparency. Is this the new age we are being thrown into where privacy is no longer cherished? Indeed, there are many benefits to embracing the crypto-world but at what cost to our privacy.
THE BENEFITS OF CRYPTO-CURRENCIES
The benefits are numerous and here are just a few:
Protection Against Fraud - Cryptocurrencies are digital, resides on the blockchain and transparent to all. The cryptocurrencies once minted cannot be counterfeited unlike fiats in circulation.
Financial Transaction Only Between You and Me - Cryptocurrencies utilizes smart contracts which when designed accordingly can be used to eliminate the need for a third party like lawyers when purchasing real property to highlight just one use.
Cryptocurrencies Are Accessible To All - Cryptocurrencies can be accessed by anyone with an internet connected device be they computers, tablets or mobile phones. Cryptocurrencies are just waiting to burst on the scene for the billions of people with access to the internet.
Not One Entity in Control - A network of computers located around the world makes the blockchain technology a decentralised one. The way that it is designed means that not one entity is in control of the infrastructure which is jointly managed on a peer-to-peer basis.
We are only at the start of a new age of blockchain technology and new uses for it is being developed everyday. Blockchain technology can be a benefit to all if used properly.
BLOCKCHAIN TRANSPARANCY – HOW HIGH IS TOO HIGH
To achieve these benefits a high level of transparency is required and built into the system. However not many are fully aware how transparent this is! We all take pride in our privacy especially financial privacy but all crypto transaction resides on the blockchain and are accessible to those who want it.
Do you tell your neighbor how much money you have or do you give them the key to your safe so they can take a peek?
MY RECENT EXPERIENCE
I recently participated in a token ICO and was concerned because I could not see them in my wallet. To help me find out I contacted the sponsor of the ICO who ask for my wallet deposit address to check.
They kindly look it up and sent me an image file showing the tokens in my wallet and I was ecstatic because I was successful in my bid to contribute to an ICO. I didn’t contribute much but nevertheless the thought of making a small return was a joyous occasion.
My happiness quickly subsided because what I found out was a complete shock to me. The image file showed that I was distributed a number of tokens and at the same time also showed the number of ETH that I held. I ddn't realise that my crypto financial status was so easy to see.
Although the use of cryptocurrencies can give you a certain level of anonymity when transacting, the high level of transparency it encompasses has made me think about my financial privacy even more. I knew the technology was but to give a high level of transparancy but to see the content off my wallet shown to me by another person was a quite a jaw dropping moment.
PEEK-A-BOO I SEE YOU!
It is very easy to see what are in other people’s wallet. All you need is their wallet address and by following the steps outlined below. Try this out with your own public address and you will see what I mean.
Go to https://www.myetherwallet.com/. If you have a MEW wallet, there is no need to sign-in.
Select “View Wallet Info”
Select “View with Address Only”
Paste or type in your ETH address in the window.
When done you can click “Unlock” to view the content of your wallet.
Once in you can see the number of Ether your wallet holds as well as the number and type of tokens you may have.
If you want to see further details like your transaction history just scroll down the page a bit and click on “ETH (https://etherscan.io)” or “Tokens (Ethplorer.io)”.
You are accustomed to this in the Steemit ecosystem because the contents of our wallet is wide open and free for all to see. As steemians there are no secrets between us. Will this be the new normal in the crypto-world?
WHAT I AM NOW DOING TO PROTECT WHAT LITTLE PRIVACY I HAVE ONLINE
However beyond Steemit, the world is a much different place and I believe financial privacy should be a must in some way or form. Blockchain technology is here to stay so we must do our utmost to protect what little financial privacy we have.
To address my concerns I have now decided to create difference wallets for different uses.
- Main Wallet(s) – Which I use to keep my stash
- ICO Wallet – Which I can use to participate in ICOs
- Donation Wallet – Which I can use if I ask for donations and payments.
- Exchange Wallet(s) – Goes without saying.
And this is what I am going to do with my wallets.
| Wallet | What I do with my wallet address |
|---|---|
| Main Wallet(s) | Keep all addresses away from prying eyes |
| ICO Wallet | Release address to sponsoring company in order to contribute |
| Donation Wallet(s) | Post addresses to website and give out to receive donations/payments |
| Exchange Wallet(s) | Goes without say, keep your addresses away from prying eyes |
I know that in the age of the internet there is no fail proof way but at least I can frustrate those who want to know. Unless you are computer savvy and can write a script to make sense of all the online transaction then be my guest. If there is a will there’s a way but why make it easy for those wanting to pry!
WHAT CAN WE DO TO FURTHER ENSURE OUR FINANCIAL PRIVACY ONLINE?
Do not personalize your main wallet(s) address by putting your face to it. This is a mistake I see many people make who post their wallet addresses to ask for donations on Youtube. This is also the case when posting on Steemit. I don’t know about Facebook because I do not go there. If you can match a face to a wallet address then you are an easy target.
In my research to write this post, I have peeked in the wallets of several Youtubers who have posted their wallets online for donations. Though they are coy about their holdings when they discuss this in their videos their wallet addresses are very revealing.
IN CONCLUSION
Am I making a big fuss out of nothing?
Are you concerned that your financial information is transparent to all?
How do you ensure your privacy online in the era of blockchain technology?
Of course the more experience users will know this already but those who are not so tech savvy like myself or newbies just beginning their crypto journey this is something that they should be aware.
I would love to learn from you and find out what else I can do.
I am concerned about this matter too. I think this is a bigger concern for Steemit because they use user IDs instead of addresses.
Can you please research the matter of privacy more and write an article with more details on how to protect your privacy in the crypto world.
Upvoted and followed :)
I'm not a techie so it will be an impossible task for me. I have trouble just understanding the lingo.
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"A game-changer in the world of finance" Should be.
At least they start making their money the honest way!
Very good points I am quite new to all of this and will deffenatqy use your tips on creating different wallets for different uses. Privacy is huge for me and this will help. Thanks
Glad that this post helps. You will be amazed when you take a peek at want is out there.
@marcusxman this actually is a great well thought out article. I like MyEtherWallet, but currently use Jaxx.io. Privacy is a main concern of mine as well so no your aren't making a big fuss about nothing as this is serious stuff. If this is the future and people are going to be accumulating serious wealth in this space it needs to be taken serious now not later.