Bitmain Leader Jihan Wu Talks on the Dilemma Between User Security and Privacy

Bitmain Leader Jihan Wu Talks on the Dilemma Between User Security and Privacy

Jihan Wu, Bitmain’s co-founder, has been talking about an important dilemma in blockchain technology and in many other aspects of life. During the World Digital Mining Summit, hosted by Bitmain and BitKan, he talked about the dilemma between security and privacy.

According to Wu, this is one of the most important areas that blockchain technology needs to address during the next decade. He thinks that the first application that blockchain technology has is in finance, but privacy and security play an important role as well.

Bitmain is one of the largest crypto-related companies in the market. Located in China, it concentrates over 70% of the crypto mining industry.

He mentioned that the UTXO security model present in Bitcoin and in the blockchain industry has been functioning since the famous virtual currency was created, even when it has several flaws. One of these problems is that the network does not have privacy because all the transactions can be tracked using the blockchain network.

However, there are several solutions to this problem. For example, ZK snark. The ZK snark offers a better privacy for users of the network. But it also has its own problems and challenges that should be addressed. With ZK snark it is not possible to immediately identify vulnerabilities in the blockchain.

Moreover, technology neutrality is quite important for the blockchain industry as well. Regulators all over the world should regulate the market and provide a clear legal framework for companies to operate.

Finally, he said that as soon as Bitcoin appeared in the market, there were no countries ready to regulate the currency. As the system started to grow, new regulations started to appear. In the future, there will be even better legal approaches towards virtual currencies and distributed ledger technology.