David Chaum speaks out against the bitcoin centralization attempt.
David Chaum speaks out against the bitcoin centralization attempt.
The creator 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 CryptoNews streamed live. During his lecture, which lasted about twenty minutes and was held via 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," said David Chaum. However, the computer inventor points out that it is vital to understand their difference to know the extent of our rights as people in both systems.
We live in a society without control of our privacy, warns David Chaum
He says that the society we live in forces us to operate in a centralized system, where we have no control or confidentiality of our information. For example, he mentions the government, banks, and even social networks that collect data to use it as an advantage in their favor.
"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," she says. This is because banks hold their customers' data and, by keeping it, they have power over their accounts. That's why the "corralito" took place in Argentina in 2001, 20 years ago today.
He warns that access to personal data has also become naturalized in social networks, such as Facebook. This company has suffered multiple allegations of abuse of power regarding the privacy of its users. For example, a month ago, CryptoNews reported that the company said it has archived the faces of almost half of its users and promises to delete them.
David Chaum asks the bitcoin community to beware of deception
Cryptocurrencies arise 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 in a centralized manner and request personal data to use their services.
This implies that bitcoin users lose privacy. Often, the institutions do not make this clear and do so under the pretext of meeting regulatory obligations through KYC, a policy of information delivery.