Hi Incognito community,
I came across this interesting substack article on Secret.network that offers a nice summary on the challenges they are facing , some pros & cons , and some nice insight into the privacy-minded people in the crypto space.
Don’t get me wrong, I love Incognito and it is not inteded to shill another project.
I learnt a lot of the project and I found it to be an interesting read and wanted to share it with other like-minded people who may be interested in a pro-privacy perspective and the challenges faced by other projects.
Here is the link to the full article :-
Here’s a snippet of the first few paragraphs of the article as a teaser…
Staking Secrecy: Towards a Better KYC with Secret.Network
The need for pro-privacy smart contract infrastructure in DeFi-to-real-world lending has never been greater. The Secret Network offers a potential solution
7 hr ago
A well-known algostable protocol was recently weighing pros and cons of integrating KYC (Know Your Customer) rules into a module for investors who’d be comfortable sharing their personal information, for the opportunity to invest in real-world asset pools where the law requires KYC disclosure.
“We don’t want to touch anything involving individual KYC,” the protocol rep said.
“Why?” I replied. “Anybody can opt in. If it’s each person’s own choice, who cares? Do you think a lot of your users are, like, tax evaders or something?”
“No, it’s not like that. Imagine if you had a bunch of depositors who wanted to invest in a pool, and shared their KYC info through a firm like Securitize. Then one day, the US government declares that we’re dangerous because we’re an uncontrollable stablecoin. They know Securitize has doxxing info on a bunch of our depositors, since we told them they could invest in this pool through a permissioned investment pool that required doxxing. So the US goes to Securitize and tells them to give up all that info, which they do. The US government indicts and sanctions a bunch of our protocol’s depositors.
“What do you think happens to our stablecoin when a partnership that we endorsed results in a bunch of our depositors getting arrested, or even named? It would destroy our whole brand. Crisis of confidence. Run on the bank. It would be game over.”
… So much more in this article. For the full article read here
