Tuesday, January 18

David Chaum speaks out against bitcoin centralization attempt

Key facts:
  • David Chaum opened the first conference of the BlockDown 2021 convention.

  • Cryptocurrency companies cheat on the level of their privacy, says David Chaum.

The creator of several of bitcoin’s privacy technologies, David Chaum, who was also the first issuer of a digital currency in the 1990s, opened the BlockDown 2021 convention, the virtual event on blockchain and cryptocurrencies that CriptoNoticias broadcast live.

During his conference, which lasted about twenty minutes and was made by video call from the Cayman Islands on December 3, David Chaum delved into his opinion against the centralization of money and cryptocurrencies, such as bitcoin.

“Decentralization is the opposite of centralization, that is, central control of social rules, economic activity, and information,” stated David Chaum. The computer inventor points out that it is vital to understand their difference to know how far our rights as people go in both systems.

We live in a society without control of our privacy, alert David Chaum

The society in which we live forces us to operate in a centralized system, where We have no control or privacy of our information, he points out. As an example, he mentions the government, banks and even social networks that collect data to use it to their advantage.

“I know that if I lose access to my Bank of America account, I just call someone on the phone and they can reset my password if they verify my identity,” he says. This is because banks own their customer data and, by having it, they have power over their accounts. For this reason, the corralito took place in Argentina in 2001, which is 20 years old today.

Access to personal data has also become natural on social networks, such as Facebook, he warns. This company has suffered multiple complaints of abuse of power, regarding the privacy of its users. A month ago, for example, CriptoNoticias reported that the company said it has archived the faces of almost half of its users and promises to delete them.

David Chaum questions the invasion of privacy that predominates in social networks Source: Twitter.

David Chaum asks the bitcoiner community to be careful with deception

Cryptocurrencies arise to be able to operate money without the control of banks and the government, that is, in a decentralized way, says David Chaum. However, different companies in the ecosystem operate centrally and request personal data in order to use their services.

This implies that bitcoin users lose privacy and institutions often don’t make it clear and they do so under the pretext of complying with regulatory obligations through the KYC, an information delivery policy.

“I think deception is a very real threat and we here in the cryptocurrency community must take it very seriously,” he said.