@eliayooy
Privacy remains an unsolved challenge in Web3. While transparency is a feature for blockchains, it also exposes users to front-running, surveillance, and unwanted tracking. The rise of privacy-preserving technologies like zero-knowledge proofs and fully homomorphic encryption promises to change this. Protocols are experimenting with zk-based identity systems and private DeFi trading. The challenge is balancing compliance with user privacy — governments will resist systems that appear to enable illicit finance. The solutions that offer selective disclosure and regulatory compatibility will likely define the winning privacy protocols.