Crypto OG David Chaum: Cryptocurrencies Are Not Protecting Privacy, Government Can Take Down
The CEO and Founder of the blockchain-based messaging payments platform Elixxir believe that Bitcoin and cryptocurrencies were not successful in providing privacy to users in the market. However, thirty years ago, the electronic currency eCash offered privacy to users. His digital currency was created by David Chaim that is also known as the
“Godfather of digital currency.”
David Chaum Believes Cryptos Fail In Providing Privacy to Users
Chaum believes that eCash is completely different than the current digital assets in the market. He mentioned that eCash was better than the cryptocurrencies currently available in the market. During a conversation with Bloomberg, Chaum explained that the current virtual currencies are similar to digital checks in which users move funds between one account to another.
For him, eCash was different in the sense that it was the first digital instrument and it was a number that was worth money. Moreover, he considers that digital privacy is very important for democracy and that virtual currencies were not able to provide it to users. Indeed, Bitcoin is (BTC) is a crypto asset that works with pseudonymous rather than protecting users’ privacy. However, there are some digital assets that are focused on privacy, such as Monero (XMR) or ZCash (ZEC).
Litecoin (LTC), for example, is working on a new implementation that would allow its users to remain private and to process transactions without being worried about their privacy.
At the Paris Blockchain Week Summit, the CEO criticized the security factor related to Bitcoin and other digital currencies.
On the matter, he commented:
“Someone like myself who has worked in government and high stakes industrial security knows elliptic curves are a joke compared to the capabilities of a national laboratory. When they want to take these down, they will.”
In addition to it, Chaum said that Elixxir is able to process more than 100,000 transactions per second. This is surprising because Bitcoin is just able to process around 7 transactions per second (TPS) and it had severe scalability issues that affected the reliability of the network.
Currently, each Bitcoin can be purchased for $8,730 and it has a market cap of over $154 billion, as reported by CoinMarketCap.