Web3, the decentralized web powered by blockchain technology, has a fundamental privacy problem that needs to be addressed for it to achieve mass adoption. Shahaf Bar-Geffen, CEO of COTI, a confidential computing platform, argues that while blockchain's transparency is celebrated, it also hinders privacy. Any data transmitted on a public blockchain becomes public by definition, making it difficult to store sensitive or commercially important data. Bar-Geffen believes that privacy is not just a good idea, but also a legal requirement, and a problem that needs to be solved for the future of Web3. COTI uses garbled circuits, a cryptographic technology that allows the use of encrypted data without needing to decrypt it, making it faster and lighter than other privacy solutions such as homomorphic encryption. The technology can be useful in applications such as decentralized finance (DeFi) and real-world assets (RWAs). Bar-Geffen emphasizes that privacy and selective disclosure are essential for enhancing various dapps and highlights the importance of privacy in sectors such as central bank digital currencies (CBDCs), decentralized identity solutions, and AI. However, privacy technology in the crypto industry has faced scrutiny from governments and law enforcement, leading to concerns over a "war on privacy." Bar-Geffen distinguishes between privacy and anonymity, emphasizing that solutions like COTI's offer selective disclosure and allow users to uphold the law. COTI has also joined the DeCC Alliance, an advocacy group promoting decentralized confidential computing, to raise awareness of the technology. Bar-Geffen believes that privacy is a fundamental building block for Web3 and touches every sector and vertical.



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