Satoshi Has No Clothes: Failures in On-Chain Privacy
Duration: 00:24:20
Speaker: Ian Miers
Type: Talk
Expertise: Beginner
Event: Devcon
Date: Jul 2026
Payments in Ethereum and Bitcoin are, by default, transparent. Transactions are conducted between pseudonyms with the sender, recipient and value exposed. While this transparency enhances auditability and decentralization, it is a major privacy issue. A growing volume of research shows that these pseudonymous identities are easily linkable. This is a major issue for privacy, fungibility, and a free market. A variety of techniques have been proposed to alleviate these issues. These include but are not limited to Confidential transactions + Conjoin, RingCT/Cryptnote, Zerocoin, Zerocash, Hawk, and Solidus. These techniques span a large multidimensional performance envelope in terms of transactions generation and validation time, size, as well as a range of cryptographic assumptions and data retention requirements. At the same time, these protocols offer markedly different levels of privacy against various threat models. Which one should we use? If performance were the sole issue, then systems without such enhancements would likely be preferred. Clearly some amount of privacy is necessary and the cost of getting it acceptable. The question is thus, which approaches provide sufficient privacy, in what contexts, and at what cost?
