Advances in cryptography have not met with user enthusiasm, suggesting a disconnect between the cryptocurrency community and its cypherpunk ancestors.
According to Coin Metrics, transactions of privacy-focused cryptocurrencies zcash (ZEC), monero (XMR), and grin only add up to 6% of bitcoin’s transactions. Zcash’s privacy feature is significantly underutilized, with less than 2% of transactions fully shielded.
Although the coins offer more privacy than bitcoin (BTC), their reception is still underwhelming. “For every transaction on one of these privacy assets, there are 16 done on Bitcoin and countless more on assets that offer even less privacy,” Coin Metrics detailed, in its September 1 report titled, “State of the Network: Issue 66.”
Coin Metrics, a crypto market data provider, is worried that these statistics mark a departure from anonymity, a fundamental principle in the initial design of virtual assets. The authors emphasized:
As cryptocurrencies continue to be adopted by the wider public, its (sic) original privacy-oriented…