Paradoxically, one of crypto’s biggest selling points keeps institutions from embracing Web3 and distributed ledger technologies.
Institutions are hesitant to adopt Web3 technologies due to the highly transparent nature of public, permissionless, blockchains. Avidan Abitbol, the project director for the Data Ownership Protocol (DOP) privacy solution, told Cointelegraph that selective disclosure through zero-knowledge technology solves this problem.
Abitol said that transparency creates the risk of theft for institutions, heightens targeting from scammers, and puts these institutions at a disadvantage during business negotiations. The project director told Cointelegraph:
Additionally, transparency can create market risks due to traders using the holdings or transactions of large institutions as an indicator to pump or dump a particular asset, Abitol said.
