Anonymity is a design

Anonymity is a design. It is a process design based on "keys" rather than "identity". For example, when you go to the vegetable market to buy vegetables, you take out money from your wallet and the vegetable seller gives you the vegetables. You are both anonymous and do not need to know each other's name, savings, monthly income, or credit. This exchange process of handing over money and goods is anonymous, but responsible, and you cannot say it is unsafe.

The "key-based" blockchain system simulates this point-to-point direct interaction process. When all transactions are not necessary and redundant identity information and personal information are exposed on the Internet, it may be unsafe. This is also the original intention of the key-based system: the private key generates the public key, and the public key generates the wallet address, so that the entire required symbol system can be completed. With the key, you can transfer money from one address to another to complete the transaction. This is a very simple and lightweight idea.

From another perspective, why do hackers want to accept Bitcoin instead of fiat currency? Because Bitcoin is safer for them. Anonymity forms protection, and encryption consolidates freedom. So reflect on it, the word security actually also involves the subject, whose security, personal? Institutional? Systemic?

Anonymity can be relative or absolute. As long as there is real data, whether it is transaction address, amount, or frequency data, it means that it can be analyzed and tracked, so there is a "EU plan to establish a central database of digital currency users to record Bitcoin transactions" to make anonymous people real-name. There are some geeks in the circle who fight back and use zero-knowledge proof technology to counter the regulation, so that when real transactions exist, there is no public data to the outside world, so there is the invention of Zcash. This can also be regarded as the opposition between technical schools and portals due to different values. This is the origin of zcash (formerly zerocoin), which is the invention of the geek system.

If a commercial organization or an authority designs a blockchain-based system, it needs to consider compliance or supervision, which is another kind of consideration. For example, the design of the central bank's legal digital currency system is another kind of framework. For the central bank, supervision is necessary, even mandatory (considering anti-money laundering and anti-terrorist financing). What needs to be ensured is the security of the entire monetary system and financial system for the entire country and political level. What needs to be considered is the security of the system, not the individual. Therefore, the term in this design is "controllable anonymity" (voluntary at the front desk, real name at the back desk).

Therefore, any design that is out of context, out of the system, and out of the interactive demands of relevant parties will generate specious disputes. Just like anonymity, it is neither a blessing nor a sin.

Note:
1 Controllable anonymity: Except for the monetary authorities, no other party involved in the circulation of digital currency knows the identity information of the owner or previous user, ensuring anonymity and untraceability in transactions. The form of "voluntary at the front desk and real-name at the back desk" can be adopted. Controllable anonymity takes into account regulatory requirements such as anti-money laundering and anti-terrorist financing. — Wang Yonghong (Secretary of the Party Committee of the People's Bank of China Clearing Center) "Technical Implementation Framework of Digital Currency"