With large institutional participants moving into the bitcoin space (BAKKT, Fidelity) and becoming involved in consensus mechanisms, will their love for KYC have implications for soft-forking new privacy features (Schnorr, MAST, Confidental TX's etc)?

So it seems that "institutional investors" meme is slowly becoming reality now. In the future, they will hold large amounts of customer funds in bitcoin, have their own nodes, media presence and hence a loud voice in the bitcoin ecosystem. They also are subject to KYC and AML.

Given that fact, what might be the implications for future implementation of privacy enhancing technology on the bitcoin protocol, such as Schnorr, MAST, Confidental Transactions and others that I'm not aware of at the moment?

Will we potentially have a new civil war with parts of the network wanting to have more privacy, and parts of it wanting to keep (or even enhance) the transparency of a public blockchain? How will the implementation processes look like, and will it cause friction when such large players will voice their veto against on-chain privacy?



Submitted October 19, 2018 at 03:53PM by TheGreatMuffin https://ift.tt/2QXImvJ

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