U.Today - Edward Snowden, known as a former U.S. security official, has raised critical concerns about the privacy vulnerabilities of Bitcoin (BTC) transactions. Thus, he refuted the popular perception of their complete anonymity, placing particular emphasis on the serious privacy risks.
In his speech during the past Bitcoin conference, Snowden explained that most transactions on the Bitcoin network can be traced down to specific individuals. He noted that various inputs and outputs, such as compliance exchanges, can link these transactions to specific users.
This ability to track the history of transactions can reveal sensitive information about their lives and relationships.
He further shed light that governments and corporations can utilize transaction data through artificial intelligence to create detailed profiles of people without their consent. By analyzing transaction patterns, artificial intelligence and machine learning can identify unusual activities, revealing information about users' behavior and connections, Snowden said.
What can be done?
Raising awareness and making efforts to strengthen the privacy and security of BTC transactions should be a cornerstone, according to one privacy advocate. Snowden stressed that he has been raising these issues for more than a decade, and that time is running out to address them.
The question now is: Can Bitcoin evolve to meet the growing demand for financial privacy without compromising its core principles of decentralization and immutability? As the officials all over the world talk more about adoption of cryptocurrency — the answer is becoming less and less clear.