Blockchain Domain Names And Their Privacy Concerns

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Blockchain Domain name projects were introduced to simplify the process of sending tokens by replacing long wallet addresses with user-friendly names. While this innovation has made transactions more convenient, it is important to address the privacy implications associated with domain names.

Remember, outside the fight for decentralization, crypto investors are also concerned with their privacy. Public blockchain already has a defect that risks the privacy of users. With one's wallet address, you can know all the assets in his wallet. With domain names coming into the space, especially in public blockchains, the privacy of users is diminished more. Most domain name users may not be aware of the implications of having a domain name or they are not just concerned with their privacy

It is quite true that domain name users use nicknames for the domain name but it doesn't invalidate the privacy concern therein. People know them by these Nicknames. One might argue that knowing one's wallet balance doesn't give access to the wallet, but, doesn't it put the person in danger? People whose wallets are traced to them through domain names can be kidnapped, and Ransom based on the wallet balance demanded. Tax evasion suits are also possible here

I do not mean that domain name usage is not good. It was a good innovation but one with privacy concerns. One thing I have observed is that while trying to solve an existing problem, another problem is usually created. For example, Smart contracts were created to offer a decentralized system. This fight for decentralization through Smart Contracts opened doors for exploits. We have seen investors losing funds due to Smart contract exploits

The decision to use domain names ultimately rests with individual investors. Those who value privacy are likely to find domain name usage less appealing due to the associated risks. People tend to adopt strategies that work best for their specific needs. I am not a believer in domain name usage, and if it were not for regulatory considerations, I would prefer to keep most of my savings in privacy coins.

In summary, while domain name projects have brought convenience to the crypto space, they have also raised valid concerns regarding user privacy

Posted Using LeoFinance Alpha