Andreessen Horowitz (a16z), a major Silicon Valley venture capital firm, singled out privacy as a key element in blockchain competition and forecast that networks that offer it will gain an advantage over the long term.
The Block reported on Jan. 7 that Ali Yahya, a16z Crypto's general partner, said privacy is becoming an essential element of blockchain. He stressed that privacy must be guaranteed for global finance to move fully on-chain.
A16z said privacy is not just a feature but a factor that drives network lock-in. It said that while moving assets between public blockchains is easy, moving private data is difficult, making it likely that networks with privacy will form strong network effects.
Security messaging and secret management are also emerging as important tasks.
Shane Mac, CEO of XMTP Labs, said quantum-resistant cryptography is important, but systems that rely on central servers remain vulnerable. He said decentralised encryption and open protocols are essential. He also stressed that for companies to manage sensitive data securely, encrypted secret management must become basic infrastructure, moving away from centralised systems.
Chi-gyu Hwang
delight@d-today.co.kr