Earlier quoted context omitted.
What is the point you are trying to convey?
Don't use AML/KYC entities?
I can't use crypto for anything useful without it. This advice means crypto is useless.
Chainalysis CTO said blockchain is easier to trace than paper money
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Re: Chainalysis CTO said blockchain is easier to trace than paper money
#72That's because when most people use "blockchain" or "DeFi" they're using AML/KYC entities that post their transaction logs to public servers. Law enforcement eats this up because it saves them the trouble of getting warrants for investigations. Bad for customers to be sure. Most have no idea what they're doing and have fallen for a scam hook, line, and sinker. They (loudly, incessantly) proclaim to their friends the…
> That's because when most people use "blockchain" or "DeFi" they're using AML/KYC entities that post their transaction logs to public servers. Law enforcement eats this up because it saves them the trouble of getting warrants for investigations.
Well, except for the important detail that KYC requirements don't preclude the need for warrants...
> They (loudly, incessantly) proclaim to their friends the benefits of a new money paradigm while deriving all sustenance through the umbilical cord of OldFi.
Yeah, it's almost like crypto can't possibly be a fully self-contained ecosystem, and thus it must by necessity have integration points with the rest of the world. Who could have ever predicted that...
Re: Chainalysis CTO said blockchain is easier to trace than paper money
#73Is this a surprise to anyone? The ledger is public and therefore subject to all sorts of statistical analyses that cash is not.
Re: Chainalysis CTO said blockchain is easier to trace than paper money
#74Earlier quoted context omitted.
some blockchains are 100% traceable.
Got examples? I can't see how an untraceable blockchain could still be considered a blockchain (or what use it would be). Isn't the whole point to be perfectly traceable?
Private blockchains. Imagine a crime cartel with a private blockchain. Obviously they are not KYC. You can withdraw funds from the cartel, or pay for cartel services with the coin.
Ironically, a version of this was in private fiat currency - the coins in the John Wick movies were used this way.
Re: Chainalysis CTO said blockchain is easier to trace than paper money
#75> Unfortunately, this aspect of his brilliant design was one of the first things to be undermined by subsequent blockchain operators. Many cryptocurrencies that have been created since are unlimited in supply, including some of the most heavily speculated ones like Solana, Dogecoin and Shiba Inu. > This is worse than what the central banks have done. No, it's not. Even a coin that is emitted one per second forever is…
Even if a single crypto coin is limited in supply, there's an infinite number of (potential) suppliers of coin.
Less than a hundred [1] that are not copy-pastes of prior projects with some irrelevant tweaks, which can for the most part be ignored.
[1] https://docs.google.com/spreadsheets/d/1geg5HHgDO-ht0u6CSTHp...
Re: Chainalysis CTO said blockchain is easier to trace than paper money
#76Earlier quoted context omitted.
The "without telling who the parties are" is more about non-personal identifiers. Similar to how knowing your IP address doesn't really identify you by itself, you need to go through (often several levels of) other parties to get that info. Which in addition is ephemeral, others will be assigned your IP and tracing which requests were made by you vs. someone else is a lot harder than tracing a credit-card.
This seems to be lost on a lot of folks, which I find strange in a tech-centric forum. Bitcoin is perfectly pseudonymous, as it strives to be, and not anonymous, which it has never attempted to be.
My recollection is that Satoshi wanted people to rotate public keys after every use exactly to have anonymity.
Re: Chainalysis CTO said blockchain is easier to trace than paper money
#77Yeah, it's entirely built on the idea that every transaction is known by everyone. I think Lance is a bit confused. Maybe he should look into Monero. The point of Bitcoin is to enable anyone to exchange value with anyone. And it does that very well. When the US justice department declared that credit card companies had to stop processing donations to wikileaks I could still donate through bitcoin.
Ask anyone outside your tech circle to explain Bitcoin and it will be something like "It's an anonymous digital currency that can't be traced, unlike bank accounts."
Re: Chainalysis CTO said blockchain is easier to trace than paper money
#78Yeah, it's entirely built on the idea that every transaction is known by everyone. I think Lance is a bit confused. Maybe he should look into Monero. The point of Bitcoin is to enable anyone to exchange value with anyone. And it does that very well. When the US justice department declared that credit card companies had to stop processing donations to wikileaks I could still donate through bitcoin.
Don't tell him about Monero bruuuh :D
Don't tell the crypto Bruhs about the several vulnerabilities already found in the Monero anonnymisation system.
https://arxiv.org/pdf/1704.04299/
The problem is also one of credibility, Bitcoin was supposed to be private and breaching privacy has proved to be pretty trivial. Encryption is hard, but maintaining anonymity is much harder.
Re: Chainalysis CTO said blockchain is easier to trace than paper money
#79Putting on my conspiracy robe, I would posit Bitcoin was created by an intelligence agency. You need cryptography smarts and the ability to glue all the various components together aswell as keep it all hush, something an intel agency can do with ease. How else do you uncover vast criminal networks? It was purposefully made to ensnare cyber-criminals. Now as for Monero, I would imagine it has them shaking in their bo…
Monero has to become fiat at some point right?
Re: Chainalysis CTO said blockchain is easier to trace than paper money
#80I have refused to shop at numerous stores because they make a point of not accepting cash. Cash is incredibly important for modern society due to actually being untraceable and allowing for private transactions. Plus, a society without cash is one where you are forced to use central banking. Blockchain is just trying to imitate cash digitally, which as it turns out is really hard to do. So it just ends up that people use central services anyways.
The point is, cash is hard to trace. And that's a good thing. I personally refuse to shop anywhere that refuses cash, and I encourage you to do the same if possible.