An ongoing turmoil ignited by crypto analytics platform, Arkham, has set the crypto community ablaze, following its Monday’s unveiling of a program destined to incentivize identification of behind-the-curtains blockchain address holders. In a Twitter conclave on Tuesday, Arkham’s CEO, Miguel Morel, defended the platform, arguing that privacy is an inherent pitfall of blockchain operations.
Morel stated that publicly accessible blockchains inadvertently breach personal data privacy as every transaction broadcasted to a decentralized network of millions is visible. He emphasized the discernibly false notion of inherent privacy in all blockchains and pointed out the reality that privacy poses a fundamental weakness in typical blockchain functionalities, notably in Bitcoin and Ethereum.
Arkham’s scheme allows anyone to establish “bounties”, a reward system for unmasking identities behind crypto addresses, an initiative critically dubbed “DOX-to-Earn”. According to Morel, the program aims to facilitate traders gather financial intel, and provides the added possibility of detecting perpetrators behind crypto thefts and exploits. Privacy advocates, however, regarded this initiative as contradictory to blockchain’s fundamental privacy principles.
When Arkham’s corporate tagline, was consequently adjusted to “Deanonymizing The Blockchain,” it sparked outrage within some sectors of the cryptosphere. Morel defended the initiative, directing attention to the harmful misconception of cryptocurrencies as inherently untraceable unless a mixer program such as Tornado Cash is adopted, a stance that was not well received during the Twitter conversation.
Despite the position held by Morel, concerns were raised about the possible exposure of regular people’s identities, particularly in instances of misidentification. Verifying the accuracy and relevance of labels appended on Arkham raised questions, which Morel addressed by stating the platform’s decision to not approve all bounties.
Morel highlighted the significant role of Arkham’s main customers-traders, hedge funds, and persons capitalizing on not just any, but pertinent token purchase and sales information that could affect large market positions. He further assured that a distinct set of guiding rules would soon be communicated to the public, with the ultimate intention to decentralize bounty moderation decisions to embrace a wider community.
However, Ran Neuner, a crypto commentator, argued that the issue was not about the system, but rather with Arkham managing the data. Critics have scrutinized Arkham’s approach and handling of data, particularly as it has less than a year of institutional experience, that has seen it at the center of multiple controversies, raising questions on how it will navigate the new challenge, and how cryptocurrency would evolve in terms of privacy and transparency.
Source: Coindesk
