4 months ago
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NSA whistleblower Edward Snowden gave a keynote speech at the Bitcoin 2024 conference in Nashville, during which he made certain shocking revelations about Bitcoin and the broader crypto ecosystem. He also made a case for why crypto remains an individual’s best bet against fighting corrupt institutional practices.
What Snowden Said About Bitcoin
Snowden mentioned during his keynote speech at the Bitcoin 2024 conference that most Bitcoin transactions are fully doxxed, although not made public. He made this revelation while noting how this is possible, considering that transactions on the network are permanent and can be publicly verified by anyone.
However, the whistleblower suggested that the identities of those making transactions on the Bitcoin network (and other chains) aren’t as anonymous as some might think. He further asserted that “legacy exchanges,” which act as on-ramps for crypto users, usually share users’ information with regulators, which Snowden called ‘great powers.’
Snowden stated that these great powers can decipher other aspects of users’ lives, including their life histories and political affiliations, through their transaction histories. He described how these powers gather individuals’ metadata or activity records and use them to form a complete picture of them without ever needing to get a warrant.
Snowden’s speech again highlighted the issue of users’ privacy, which has become a common theme when using centralized entities. He noted how these entities have no regard for users’ data despite several warnings and even the introduction of privacy laws like the General Data Protection Regulation (GDPR).
The NSA whistleblower indirectly made a case for decentralization, a major principle in the crypto world. The fall of several centralized exchanges like FTX and the increased surveillance of exchanges like Binance have led to greater adoption of decentralized exchanges (DEXs), considering the freedom and privacy they afford users.
This issue regarding the breach of users’ privacy also makes a case for self-custody and how crypto users should embrace self-custodial wallets. This ensures that individuals have greater control over their finances rather than relying on third-party systems, which can easily be compromised.
Vitalik Buterin’s Words Come To Mind
Snowden’s speech echoes a similar sentiment to that of Ethereum’s co-founder Vitalik Buterin. While recently discussing the relationship between crypto and politics, Buterin noted that crypto was more than just money. Instead, he argued that the primary purpose for which crypto was introduced was to achieve freedom.
According to Vitalik, this freedom comes in several spheres, including ‘freedom and privacy of communication,’ ‘freedom and privacy-friendly digital identity,’ ‘freedom and privacy of thought,’ and ‘high-quality access to information, among others. In achieving this freedom, users can have greater control over their digital identity and how their information is shared.
The crypto space is undoubtedly making strides to grant individuals this freedom. For instance, technologies like Shiba Inu’s Fully Homomorphic Encryption (FHE) solution enable encrypted data processing and help address privacy concerns when using blockchain technology. Zero-knowledge (ZK) proof technology is another, as users can now transact anonymously without fearing their identity being revealed.
Featured image created with Dall.E, chart from Tradingview.com
