Erik Voorhees: Bitcoin Blockchain’s Visibility is Crucial for Government Acceptance
One of the significant concerns regarding Bitcoin is its fungibility. The debate about this token is continual, with the majority of crypto enthusiast arguing that Bitcoin can become an acceptable means of payment only if it achieves perfect fungibility.
According to Erik Voorhees, the CEO of ShapeShift, fungibility is not one of the most vital aspects needed for Bitcoin to replace fiat currencies as the primary mode of payment. Speaking in the latest installment of Monero Talk, Voorhees compared fungibility to decentralization, saying that cryptos are largely fungible although it is not as perfect as it should be. Precisely, he said that even though it possible to track the transaction history of Bitcoins, people are still skeptical over the origin of some coins. This shows that the currencies are largely but not perfectly fungible.
There are numerous publications on how to improve the fungibility of Bitcoin. The majority of these propose the improvement of privacy on the Bitcoin network by implementing solutions such as Dandelion, Schnorr, and Taproot, and so on. In this regard, Voorhees stated that it is impossible to implement ‘Confidential Transactions' (ensures that only the involved parties see the amount of funds in a particular transaction) to improve fungibility on the Bitcoin blockchain.
The rigidity of the Bitcoin protocol is the primary reason why the network can't adopt Confidential Transactions. Voorhees believes that this has both positive and adverse effects on the network. He said that that the relative traceability of Bitcoin means that governs are comfortable with the digital currency. Erik concluded by saying that if the cryptocurrency was completely anonymous, it would have been considerably harder to convince authorities to allow its use. That said, there is still a long way to go if all governments worldwide are to permit the use of Bitcoin.