In the World Digital Mining Summit, co-founder of Bitmain, Jihan Wu spoke about the security and privacy aspects of blockchain technology. The summit was hosted by Bitcoin mining giant Bitmain and cryptocurrency data startup, BitKan.
Bitmain is a privately owned company and global leader of blockchain industry. The company is headquartered in Beijing. Bitmain is one of the largest Bitcoin mining company and producer of ASIC chips. The company also operates largest crypto mining pools, Antpool.com and BTC.com. Bitmain is an investor in BitKan.
According to Jihan, privacy and security are the areas which the blockchain technology had to address over the next decade. He added finance will remain the major application of the blockchain technology but the contradiction over security and privacy would be the major point of attention in finance. Financial applications of blockchain technology are becoming more widespread so it is becoming important to regulate the blockchain industry. As with the increasing adoption of digital assets, participation across international borders is also increasing so it is necessary to rectify the legislative issues in the blockchain industry.
At the time of Bitcoin creation, nobody was ready to take the responsibility to respond to the regulatory issues. But now the digital asset market has grown to an extent that it is not possible to ignore the regulatory issues. They must be addressed immediately.
Since the time of Bitcoin creation the security model functioning for Bitcoins if UTXO model. The UTXO model has several flaws in them which need to be addressed immediately. Because of these flaws, all transaction on the blockchain network could be tracked. The problem with existing UTXO model can be addressed by implementing new technology. ZK snark is the new technology which can be an alternative of UTXO model. ZK snark claimed to offer better privacy and security than the existing technology. If the vulnerabilities in the blockchain network could not be identified immediately than it could have done lots of damage.