Sunny King could be the mastermind behind two distinct altcoins, but that does not make him any significantly less challenging to pin down. When CoinDesk interviewed the creator of peercoin and primecoin, he refused to chat via any of the standard channels that we use – phone, Skype, or IRC – and instead restricted himself to either the safe, private on the internet chat plan Cryptocat, or the on the web chat system at peercoin’s net site. In the age of NSA spying, we recognize the difficulty in locating safe channels – but the query is, why be anonymous at all?
Anonymity is understandable in some digital currency-related activities. Bitcoin was used exclusively to trade for illicit goods on the Silk Road on the web black marketplace, and Ross Ulbricht, its founder, was paranoid about his anonymity due to the fact he didn’t want to be arrested. He wasn’t paranoid adequate, and was apprehended anyway.
But bitcoin itself is not illegal, and neither are the alternative currencies introduced by people like King. On the face of it, you may well think they have absolutely nothing to hide from. But the prevailing sentiment amongst these that do choose to remain anonymous is that they might, in the future, if governments alter their minds.
Worries about the political climate
“I just think the existing political climate is not very good so I could get some much more time if it turns negative,” King stated when we very first spoke to him. “If authority bans currency development that [sic] possibly I can still continue for a while.”
“If you know a bit history about online currencies (e.g. e-gold) and peer-to-peer file sharing networks (e.g. grokster), even software program developers are not protected from government prosecution/persecution,” he added not too long ago. “I think many men and women share these issues, and not surprisingly, the father of cryptocurrency, Satoshi Nakamoto, was also of similar opinion.”
King isn’t alone in wanting anonymity. Following all, bitcoin’s founder, Satoshi Nakamoto, disappeared from the neighborhood two years soon after he launched the project, and hasn’t been heard from since. Other individuals in the community, such as these operating pools, usually seek to preserve their privacy, going by on the internet handles rather than revealing their accurate selves.
Others decide on anonymity to keep personalities away from altcoin projects. A researcher going by the name Eric Gonzales, who published a paper in July 2013 proposing an option to bitcoin, told us that he and his colleague decided to remain “pseudonymous” due to the fact their paper was about the message and not about personalities.
Like other folks, he hinted at fears over feasible government retribution in the future.
“It is potentially counterproductive for the project to have faces attached, especially if it gets implemented,” he mentioned at the time. “Satoshi Nakamoto’s decision to stay anonymous was quite sensible and I don’t feel it was a coincidence that he left the scene just following Gavin Andresen gave his speak at the CIA.”
Charles Lee, the founder of Litecoin who now functions at Coinbase, has been much less publicity shy, although he was taciturn about admitting that he worked for Google when he was there. He understands the factors why some choose to stay anonymous, even so.
“People are constantly afraid of government intervention. Cryptocurrency is such a powerful concept that it can practically overturn governments,” he told us when we initial interviewed him. “Controlling the coin is so critical to a government. So if BTC comes along and disrupts the reserve status of the USD, the USD would most likely do anything about that.”
The need for accountability
The problem with all of this is that anonymity can also lead to a lack of accountability. When people are identifiable only by an on the internet handle, it tends to make it simpler for them to adjust path or renege on agreements. When the developer for Phenix exchange, an exchange for the Phenix altcoin, went AWOL with the exchange’s code, leaving many of the coins stuck in the exchange, it was tough for the community to track him down and hold him accountable. A combination of anonymity, and the concentration of energy in the hands of 1 or two individuals, created the perfect situations for the implosion of the coins.
John Manglaviti, who left the UNOCS initiative to bridge phenixcoin, feathercoin and worldcoin right after it fell apart, became the frontman for peercoin earlier this year, functioning alongside Sunny King.
For a coin to really flourish, it requirements a public face which is simply contactable, Manglaviti points out. “When we speak to different magazines and publications, they want somebody that they can talk to,” he says, pointing out that he became involved in the coin right after it had currently been conceived and launched.
“I was just a projects guy that wanted to help out. My name was already out there. You cannot place the genie back in the bottle,” he says. “I’ve practically nothing to hide. I’m just type of the middle man, and I have no say over what direction the currency is headed.”
For those men and women seeking to deal with big investors in the digital currency space, it is challenging to be anonymous. Venture capitalists like to know who they’re dealing with. This appears to draw distinct lines between the hobbyist/grassroots communities, and those attempting to move digital currencies into the mainstream industrial space.
Nevertheless, this doesn’t imply that all grassroots altcoin founders or core devs are anonymous. The founders of altcoins such as feathercoin and freicoin are open about their real names and backgrounds. And of course, those at the moment guiding bitcoin, specifically these guiding nearby or international organizations to market it, publicize their correct identities.
Nonetheless, there are nonetheless some people who contemplate governmental displeasure – and worse – a serious threat.
“Bitcoin ownership may prove to be a larger threat to state handle than gun ownership,” said a single prominent bitcoin entrepreneur, usually outspoken in the community, who asked us to keep his comments non-attributable for this write-up. “For that explanation, a lot of bitcoin owners could want to stay anonymous.”
What do you feel? If you’re not attempting to score venture funding and charm the regulators into accepting digital currency, does it pay to maintain your head under the parapet, and stay anonymous? And ought to you try to stay unidentifiable even when just holding bitcoins?
Anonymity image by means of Shutterstock
View Why Are So Many Digital Currency Players Anonymous? on CoinDesk.
Why Are So Many Digital Currency Players Anonymous?
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