This article is featured in Bitcoin Magazine’s „The Privacy Issue”. Subscribe to receive your copy.
Privacy is a fundamental issue in using a public blockchain system like Bitcoin. Numerous projects and proposals have been made over the years to either build privacy preserving tools on top of Bitcoin, or fundamentally add privacy at the protocol layer itself. Satoshi himself discussed briefly the idea of zero knowledge proofs being a mechanism to enable greater privacy before he left.
This is all the original whitepaper had to say on the topic of privacy:
10. Privacy
The traditional banking model achieves a level of privacy by limiting access to information to the parties involved and the trusted third party. The necessity to announce all transactions publicly precludes this method, but privacy can still be maintained by breaking the flow of information in another place: by keeping public keys anonymous. The public can see that someone is sending an amount to someone else
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