In the world of decentralized finance (DeFi), full transparency is not always beneficial. It gives users a clear view of all transactions, but it comes with significant challenges for investors and institutions.
✨ Key points:
💰 The hidden costs of transparency: revealing wallets, leaking trading strategies, and exploiting MEV turns 'openness' into a barrier to privacy, security, and competition.
🚀 Unfair market dynamics: public mempools allow bots to manipulate trades, and over $1.9 billion in MEV has been extracted on the Ethereum network — constituting a hidden tax on users.
🔐 Privacy is not secrecy: true privacy protects strategies and creates fairer and more efficient markets.
⚡ Zero-Knowledge Proof (ZKP) technology: enables compliance, liquidity proof, and transaction execution without revealing wallets or strategies.
🏦 The future of programmable privacy: to attract institutions, infrastructure must be integrated that balances regulation, efficiency, and confidentiality.
📊 Privacy is not a threat; it is what makes the market fairer and more efficient, allowing institutions and large investors to compete intelligently within an open and secure environment.
