The Rise of the Anon: Protecting Innovation

A little over ten years ago, an anonymous developer known only as Satoshi unleashed an unstoppable new form of money into the world. In the years that followed, that invention spread, grew, and garnered global influence, reserving a space on the balance sheets of major corporations while knocking sternly at the door of printer-happy central banks. It’s this same controversial nature that has led many to acknowledge that Satoshi’s decision to remain anonymous may in fact have been one of the great gifts imparted to his technology.

Removing a central figure as a fulcrum of influence, for better or worse, allowed the technology to function independently as intended.  Increasingly, however, more and more founders, online personalities, educators and others are choosing an anonymous identity – not only for the protection it may proffer their ideas, but for the personal safety it also provides.

Being an “Anon”: The Benefits and the Trend

In an increasingly online world, a personal identity can be a target – names, email addresses, locations and other identifiers are all easily exploitable by other anonymous actors.  Duplicate accounts and impersonation are objectives easily accomplished with a name and email. With the connection of a name and email to other sensitive information, such as passwords, risks like identity theft and blackmail begin to loom large. While often this level of access is due to a data breach at some major company with a long list of such info, proffering personal information freely online doesn’t help. Additionally, the increase in “doxxing” of online personalities whose ideas may run contrary to others’ beliefs – or simply have rubbed some online troll the wrong way – is another very real reason for personalities to go dark.

The ability to express one’s opinions and ideas without the threat of asymmetrical personal repercussions is becoming increasingly desirable or even necessary in a polarized world. These factors, independently or combined, have given rise to credible anon. Today, community members and creators are often able to legitimately build, lead and educate from behind the lines of an avatar.  The acceptance of credentials from accounts behind even the names of comic book heroes or other mythical characters happens via the vetting of their content, rather than character, and has often even earned these anons a place in the upper echelons of internet influence.

Bad Actors

It’s not to say that anonymity doesn’t work both ways. While anonymity is a tool being increasingly used by credible sources, it also still remains a shroud to those who prefer to lurk in the shadows, circumventing accountability. The same protection offered to those who might share simply opposing or unconventional views can also be used to spew unwarranted vitriol that would never see the light of day under public circumstances. Likewise, anonymity offers easy cover for scammers, shills, and “developers” of new and unknown but sure-to-be-huge projects, selling the snake oil of the next big thing and then disappearing into oblivion without repercussion. It stands to reason that in an anonymized world, critical thinking, level-headed judgment and personal responsibility play an even greater role. However, the layer of mystery anonymity provides can make distinguishing between bad actors and legitimate anons more challenging.

Navigating Anonymity

When is it necessary to know the character of a person, and when is it enough to rely on the quality of their content? Some of the most respected names in business history have gone on to steal their customers’ funds. A public persona and even proven track record are not necessarily always enough to judge the outcome of an endeavor. However, these same aspects are nonetheless an important measuring stick in due diligence.  Particularly with investments, the outcome of the project remains to be seen – and the character of the founder becomes a greater factor in decision making. At a minimum, a point person reduces the risk of the same absconding with funds or being able to escape responsibility entirely in the event of gross negligence.  An anonymous founder, meanwhile, doesn’t have to be a red flag – many projects can and do benefit from the absence of a central figure. However, even Satoshi’s brilliant brainchild, as the product of an anon, had to work seamlessly for almost a decade before it earned the attention of major investors. Other types of projects rely less on trust. Endeavors like analysis and opinion, other forms of content creation and even sometimes reporting, offer a greater opportunity to be immediately vetted, discredited, discussed or accepted.  The nature of content as a product itself requires less reliance on unknowns like future promises or the persona of the author themselves. While discretion plays a role in any online activity, content provided is intrinsically less opaque than contracts based on character when it comes to anonymous sources.

Anonymity is a double-edged sword that provides protection to whoever wields it. The rise of the anon may mean the distinction between criminal tactics and those used in service of discretion blurs, with future parameters for what justifies suspicion versus what constitutes privacy potentially becoming battlegrounds.  However, just as attackers have historically used anonymity as a veil with which to protect themselves, it stands to reason that anonymity is a tool now being used by credible sources – from innovators to educators and more – in order to mitigate such attacks and remove both themselves and their ideas from becoming targets.  As more people’s lives go online, being an “anon” can provide personal safety on the web, as well as allowing the focus of someone’s work to be exactly that.

Consider These 6 Factors When Trading Crypto In 2021

What do trading audiences expect with high-quality, modern exchange and aggregator services? It has a lot to do with the context of the industry – what people are doing with their assets, and the choices that they have to navigate within the greater fintech ecosystem. 

Here are some of the things that contribute to superior platform services for cryptocurrency and defi exchanges that want to move the ball forward in the realm of decentralized assets.

 1.Low Fees and Capable Throughput

 One thing that cryptocurrency brought to the world of finance is the types of frictionless and easily verified transactions that lower the cost of providing services. The best exchanges and associated platforms pass this on to users in the form of low trading fees. The scalability and design of these systems means that administrators can take advantage of core efficiencies that empower their users.

 2.Regulatory Problems

 Many of us have heard about what happened at BitMex and OKEx and Kraken and Ripple…  and the list goes on – the cryptocurrency sector is rife with conflict between regulators and the parties being regulated. Exchanges that are proactive in compliance will often outperform those who aren’t, and deliver more in terms of investor confidence.

Think about these aspects of crypto exchange and interface design.Atani is a major aggregator performing with attention to the above pillars of quality, with thousands of pairs, low trading fees, and much more. Get the security and access of a well-designed sandbox for cryptocurrency transactions.

3.Liquidity Aggregators

The best platforms are able to bring a lot of siloed activity together from places like Coinbase, Kraken, Bitfinex, and other areas of the cryptocurrency world, to offer traders a bigger menu at their fingertips. This is more than just an academic exercise – having more than one exchange platform in a particular interface gives users access to more in real time as they plan their portfolio strategies.

4.Portfolio Tracking, Event Notification and More

Of course, it’s important for end users to be aware of what’s happening during a given market session. A good trading terminal will accomplish this through offering different kinds of transparency resources. Traders may be involved in complex positions. They should be able to see these at a glance. They should also be able to understand whether any big volatility events are going on. All of this drives more informed trading sessions and it’s a must for new exchanges to think about how they offer these features.

5.Uptime and Availability

One of the worst situations for traders is when they can’t access their assets and trade them in real time.

Sadly, crypto exchanges are not always immune from unplanned downtime, and that can create problems in various ways. The best exchanges will use redundant zones of availability to maintain service, even through peak trading or various kinds of emergencies.

6.Secure Wallet Profiles

Exchanges also work to put traders’ minds at rest in terms of cybersecurity. With a combination of proper safeguards and non-custodial brokerage frameworks, end users can be confident about trading without the threat of internal hacking affecting their wallets or what goes into and out of those wallets on a regular basis.

Image source: Atani

A Rising Rate Environment will Tilt from Bonds to Crypto, Says Fundstrat Founder

Speaking on CNBC’s Crypto World Monday, Thomas (Tom) Lee, the founder of equity research firm Fundstrat Global Advisors, opined that with interest rates being on a reversal after experiencing a 30-year decline. 

This is a game-changer for crypto because other investments like bonds will become less attractive. Lee noted:

“That means for the next 10 years, you’re guaranteed to lose money owning bonds… that’s almost $60 trillion of the $142 trillion [of U.S. household net worth].”

He suggested that the $60 trillion would find its way into the crypto sector to earn yield. 

“The obvious thing is it rotates into stocks like FAANG, but I think what is more likely is a lot of speculative capital from equities… it’s really going to be tracing its roots to a rotation out of bonds and it’s going to eventually flow into crypto.”

The market predicts the United States for the upcoming rising interest rate hike, while the latest Consumer Price Index (CPI) stands at 7.5% year-over-year. 

Lee, however, acknowledged that an open mind is of the essence in the crypto market based on the volatility experienced. He stated:

“Unless someone really has a crystal ball, it’s very difficult to be precise in crypto. Drawdowns of 40% are really common and bitcoin makes most of its gains in 10 days in any single year. It’s tough to be too precise with crypto. It’s wide lanes.”

Crypto has emerged as an alternative asset class, having experienced significant diversification beyond trademark cryptocurrencies, like Bitcoin (BTC) and Ethereum (ETH), in the last two years.

Some of the new members become active in the cryptocurrency family, such as block decentralized finance (DeFi), stablecoins, and non-fungible tokens (NFTs). Nevertheless, these new assets have to stand the test of time so that investors can gain confidence in them as they have in Ethereum and Bitcoin.

A recent study by blockchain firm Paxos noted that consumers were changing their minds because they were treating crypto as ideal investment vehicles. 

U.S. Should Align Itself with Digital Assets to Safeguard its Interests, Says Chainalysis Founder

During a Senate hearing, Chainalysis founder Jonathan Levin opined that the U.S. ought to prioritize and invest in digital assets to get the upper hand when enhancing financial transparency, public safety, and national security. 

Speaking to the Senate Committee on Banking, Housing, and Urban Affairs, Levin noted that the United States should be at the forefront of protecting its interests, and digital assets would offer a stepping stone towards this objective in the 21st century.

He stated:

“Bitcoin and Ethereum are technologies that pose the greatest opportunity to increase the degree of transparency in financial services, include the excluded, and create new ways for commerce to happen.”

Despite blockchain technology not being leveraged to its optimal potential, Levin believes it is an ideal vehicle for heightening transparency, and the U.S. should take advantage. 

He added:

“We need to make sure we continue to invest in financial technology and build the financial rails that will be used by the globe in the 21st century.”

Just like the open-access currently accustomed to the internet, Levin believes a well-supported crypto market could shine a light on illegal activities happening in the financial world. 

Based on the 2022 Crypto Crime Report, blockchain analytic firm Chainalysis disclosed that illicit transaction volume hit 79% in 2021.

Various experts have echoed Levin’s sentiments that policymakers should prioritize crypto. 

For instance, Gene Hoffman, the president of blockchain company Chia Network, said that more money laundering is carried out by using U.S. dollars than cryptocurrencies.

“Government regulation would absolutely make sense. We don’t stop money just because there’s money laundering. Crypto gives us an opportunity where everyone could have access to these systems, and they wouldn’t have to be country-specific or opaque,” Hoffman added. 

CBDCs Require Balance between Data Access & User Privacy Protection, HashCash CEO Says

Since central bank digital currencies (CBDCs) are showing more exposure to the market, taming illegal activities requires a delicate balancing act between data access and user privacy protection, according to HashCash Consultants CEO Raj Chowdhury.

Chowdhury pointed out:

“CBDC projects need to address their drawbacks and act considering the potential side-effects. They may lead to the disintermediation of the nation’s banking sector, and lend the government an upper hand in state-sponsored censorship of a citizen’s spending patterns.”

Even though the CBDC idea is revolutionary, Chowdhury believes caution should not be thrown to the wind because of possible dangers regarding storage. 

He noted:

“The working principles of CBDC are converse with the ideals behind Bitcoin and blockchain technology. A centralized storage system has grave security risks, which will likely diminish the anonymity and privacy normally associated with conventional cash or crypto transactions.”

Therefore, extensive research is necessary before launch to iron out possible difficulties. 

The issuance of CBDCs seems to be a race against time because, in the eyes of many nations, owning a CBDC is instrumental in having control of the global markets. 

For instance, the Reserve Bank of Australia (RBA) recently launched a year-long trial to explore innovative use cases and business models of a CBDC, Blockchain.News reported. 

Therefore, the pilot project aimed at getting better insights into the regulatory, legal, and technological aspects of CBDCs. 

Meanwhile, CBDCs are expected to drive the financial inclusion of nearly 1.7 billion people left out of the banking system once implemented. 

This attribute might be propelled by the fact that CBDCs are digital assets pegged to real-world assets and backed by the central banks. As a result, they represent a claim against the bank exactly the way banknotes work.

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