Cryptocurrency: "Auditablity [of the Coinbase]" Is Moot Arg Against Coin Privacy, Formal Verification, Risk, ZK, BTC Is Not Fungible

[grarpamp]

If a privacy coin protocol works in its formally verified and audited
design, software, and operational protocols, then you do NOT need to
count coins in the coinbase, you do NOT need "transparency" into the
blockchain or the database ledger, you simply know through exhaustive
formal audit, rigorous design and testing, simulation, opensource, etc
that it works, you don't need to "see" it.

In fact, Bitcoin and all other cryptos have never been subjected to
such high audits.

You have foolishly elevated the meme of "transparency" that you see
into making assurances and trust that it cannot provide.

Assured protocols eliminate the need to put such exclusionary weight
and arguments upon "transparency", thereby enabling coin privacy.

If you are "trusting" the software, instead of validating the software
protocols, then you absolutely cannot rationally be placing $Trillions
of money into it.

Given that nothing's properly validated today anyways,
there's no reason left not to do privacy coins,
and every reason to begin doing them well.

Expect that Zero Knowledge systems will become much bigger component
elements in the space, and that "transparency" aka non-privacy will
fall out of favor, not least due to its obvious risk and plan of
severe detriment, and very current harm, upon Human Freedom.

Got DEX yet? You're going to need it to shift out of all that
Bitcoin-BTC into the coming privacy coins that will soon overtake
it... Bitcoin-BTC is NOT fungible.



Why Satoshi made Bitcoin transparent and not privacy oriented? (self.Bitcoin)

submitted 9 hours ago by Advanced_Code1443

Hello, been in the space for a coulple years now, I probably know the
answer to the question but wanted to talk with you guys about it.

Was pondering the recent BlackRock's ETF filing and its conseguences
for the future of the industry and I stumbled upon this problem.

Why did Satoshi make Bitcoin transaparent?

Was it because he wanted the protocol to be actually adoptable and not
only a nieche currency?

​

Let me know what you guys think and, most important, if some one
actually knows or remeber the reason behind this feature, since I
believe it is expressed somewhere... maybe in the original forum...

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[–]NervousNorbert 9 points10 points11 points 9 hours ago (0 children)

    Why did Satoshi make Bitcoin transaparent?

It's not clear what you mean by "transparent". If you mean why he
didn't make transactions harder to trace, the simple answer is that he
invented the whole tech and there were no techniques to conceal money
flows properly back then.

So Satoshi didn't sit and think "I can choose to make it traceable or
untraceable. I think I'll go for traceable." He understood that
traceability is a problem and suggested various measures against it in
the whitepaper.

14 years later we have a few techniques to conceal transaction sender,
recipient and amount, but they all come with significant trade-offs
that may include much larger transaction byte size, and more difficult
to audit money supply. These things are hard and involve cryptographic
innovation that takes years – you couldn't expect Satoshi to just code
it up in a few years on his own before Bitcoin was even public.

Those 14 years since inception has given Bitcoin many improvements in
privacy, however, and it's still a major focus for many developers.

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[–]iconoclast63[🍰] 6 points7 points8 points 9 hours ago (1 child)

Unless the blockchain is open source and public the system would
require trust. Unless Bitcoin is trustless and open it's not really an
innovation.

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[–]Umpire_State_Bldg 1 point2 points3 points 9 hours ago (0 children)

Bob logged into a KYC exchange and bought some Bitcoin. Then Bob sent
the Bitcoin to a receive address which had never been used before.

To whom did Bob send those Bitcoin? * Alice * Himself * Illinois Nazis
* His brother * Marcellus Wallace, who don't like to be fucked by
anybody except Mrs Wallace * The babysitter * Lance, the heroin dealer
* A terrorist organization * A woman who sells very nice socks from
Peru * The St. Helen of the Blessed Shroud Orphanage * Joe Walsh

Answer: * Nobody knows (except Bob)

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[–]Relai_Alexredditor for 3 months 1 point2 points3 points 9 hours ago
(0 children)

    Why did Satoshi make Bitcoin transaparent?

The network being open to everyone check anything means, no trust is necessary.

    Was it because he wanted the protocol to be actually adoptable and
not only a nieche currency?

Bitcoin is still a niche currency.

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[–]pablo_in_blood 1 point2 points3 points 8 hours ago (0 children)

The form of digital trust that was essentially invented with bitcoin
requires transparency. It’s a public ledger. That’s the whole point.
Privacy mechanisms can be (and have been) built on top of that but
they aren’t the core innovation that made bitcoin what it is.

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[–]bitusher 1 point2 points3 points 7 hours ago (0 children)

Bitcoin transactions onchain are not "transparent" but pseudonymous.
This essentially means you can choose between degrees of transparency
or privacy. Being able to audit the supply and give people the choice
is essential.

Day to day transactions were never meant to happen onchain regardless.
These are supposed to occur on other layers like lightning payment
channels which is very private by default.

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[–]BellSouthUY 1 point2 points3 points 9 hours ago (0 children)

LOL but that can be said about any invention. "Why didn't they think
about this in the original draft". There was no perceived need for
privacy coins in a world where coins didn't exist. The problem had to
be created before the solution.

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[–]looneytones8 0 points1 point2 points 8 hours ago (0 children)

auditability

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[–]StrawGreeter 0 points1 point2 points 6 hours ago (0 children)

    Why Satoshi made Bitcoin transparent

Bitcoin's transparency is limited to a single link from a transaction
input back to the transaction output being spent. This link provides
proof that a transaction output is either unspent, or spent only once

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[–]BusinessBreakfast3 0 points1 point2 points 3 hours ago (0 children)

So that we can practice "don't trust, verify"