The allure of anonymity has always been a significant draw in the blockchain ecosystem. Early adopters touted the ability to conduct transactions in secrecy, far from the prying eyes of centralized institutions and regulators.

However, as blockchain evolves, the industry faces a critical question – Is anonymity still paramount, or is it a fading aspect amidst growing demands for transparency?

Why Blockchain Transparency is Important?

The blockchain sector is undergoing a transformation. Enhanced regulatory scrutiny and advancements in blockchain analytics are slowly demystifying the once-opaque crypto ecosystem.

A revelation by the on-chain detective ZachXBT, who exposed the crypto holdings of a meme coin trader, Murad, highlights this shift. This exposure ignited debates about the ethics of revealing such information and whether such acts undermine the foundational privacy promised by blockchain.

Read more: Who Is ZachXBT, the Crypto Sleuth Exposing Scams?

Despite concerns, many argue that transparency is crucial for combating fraud, money laundering, and other illicit activities within the crypto space.

The call for greater oversight is partly driven by the increasing incidents of crypto-related frauds and hacks. According to an Immunefi report, over $412 million was lost to such incidents in the third quarter of 2024 alone. Moreover, year-to-date, the total reached $1.3 billion across 169 incidents by September 2024.

These security breaches and the utilization of cryptocurrency in illegal activities fuel the debate over blockchain’s dual nature—offering freedom yet potentially facilitating unlawful acts.

Need For a Balanced Approach

In an interview with BeInCrypto, Alex Pruden, Executive Director at Aleo Foundation, countered this perspective. He highlighted the misuse of traditional financial systems in crimes.

“The traditional financial system is used for illegal activities all the time. 99% of money laundering and sanctions evasion actually happens through large financial institutions (who don’t catch it until after the crime has been perpetrated). Does that mean we should ban banks and payment processors? Of course not, because these institutions provide benefits to everyone else. The key is finding the right balance,” Pruden told BeInCrypto.

Supporting this, a Crypto Information Sharing and Analysis Center (ISAC) report notes that cash is used far more frequently than crypto in illegal activities. The report challenged the notion that crypto is predominantly the currency of criminals.

Read more: Anonymity vs. Pseudonymity: Understanding the Key Differences

Moreover, purists and privacy advocates contend that an extreme move towards openness erodes the core values of blockchain. Pruden emphasized the importance of privacy.

“Real-world financial transactions between parties are often predicated on a notion of confidentiality. And this confidentiality/privacy is essential for businesses to function. For example, businesses transacting with one another may not want the contents of that transaction public to competitors. Likewise, individual financial transactions on public blockchains are at risk from surveillance, data mining, and cyberattacks,” Pruden stated.

Contrary to Pruden’s view, Adrian Brink, co-founder of Namada, argues that blockchain was never truly about privacy.

“I don’t think that blockchain was built on the promise of privacy at all. Bitcoin doesn’t offer any privacy guarantees. The potential for de-anonymization was there from the beginning,” Brink told BeInCrypto.

Read more: Top 7 Privacy Coins in 2024

Experts Claim Zero Knowledge Proof is the Solution

This tension between privacy and transparency raises pivotal questions about the future of blockchain. Can it remain decentralized and secure while compromising on anonymity? Or is privacy still essential to protect users and uphold the technology’s principles?

William Wendt, Head of Ecosystem at Oasis, told BeInCrypto that privacy isn’t a binary choice.

“Often, this issue of privacy vs. transparency is looked at through a binary lens. Either a blockchain is fully transparent or fully anonymous. However, this is not the case. Privacy is a spectrum, and different dApps and users will have different preferences for what level of privacy/transparency they will need,” Wendt said.

According to all three experts, a promising solution lies in zero-knowledge technology, which offers a way for transparency and privacy to coexist. Zero-knowledge proofs (ZKPs) allow for the verification of transactions without revealing underlying data, thus maintaining user privacy while ensuring compliance with laws.

“Historically, transparency was seen as a mechanism to enforce compliance, but it doesn’t have to come at the cost of user privacy. Cryptographic solutions like ZK proofs (ZKP) enable a system where transactions can be “correct by construction” in terms of the law, without revealing the underlying data. This protects user privacy and creates a user interface closer to a bank account/payment app than most Web3 applications today,” Pruden noted.

Brink also supports this nuanced approach, emphasizing that the need for privacy varies by context.

“What you need to share with your local government is going to be different from what you want to share with the world. The key issue is primarily self-sovereignty. We’re moving towards a world where technologies like zero-knowledge cryptography empower users with the choice of what to share. Privacy can coexist with transparency, but the architecture must be thoughtfully designed,” Brink told BeInCrypto.

Read more: What are Zero-Knowledge Proofs? Securing Growth for Web3 Apps

Zero-knowledge cryptography addresses privacy concerns and also meets regulatory requirements, offering a balanced solution that protects individual privacy and fulfills transparency obligations. This technology proves compliance with anti-money laundering (AML) and Know Your Customer (KYC) regulations without disclosing personal information, providing a win-win scenario for all stakeholders.

Due to heightened interest, the zero-knowledge sector is growing. According to data from CoinGecko, the total market capitalization of zero-knowledge coins stands at nearly $13.5 billion.

In conclusion, while blockchain was initially celebrated for its privacy features, the changing environment suggests that both transparency and privacy are necessary for its future. The ongoing development of zero-knowledge cryptography and similar technologies may hold the key to maintaining blockchain’s founding principles while adapting to new regulatory environments.

BNB has faced a significant rejection at a critical resistance level, raising concerns among traders about a potential price correction. After an impressive rally, the momentum has faltered, leaving the cryptocurrency at a crossroads. 

This key level has proven to be a formidable barrier, indicating that selling pressure may be increasing as bears step in. However, the big question is whether this rejection marks the beginning of a downward correction or if the bulls can muster enough strength to regain their footing and continue pushing higher.

As the market navigates this pivotal moment, this piece will analyze BNB’s recent rejection at the critical resistance level and assess the implications for its price trajectory. By examining market trends, technical indicators, and trading volumes, this analysis will explore the possibility of a correction and what it could mean for traders.

Indicators Pointing Toward A Downside Correction For BNB

Recently, BNB’s price has turned bearish on the 4-hour chart, pulling back toward the 100-day Simple Moving Average (SMA) after facing rejection at the $605 resistance level. This downward move signals a shift in market sentiment as bulls struggle to maintain upward momentum. The rejection at the $605 resistance level has triggered heightened selling pressure that could push the price lower for a potential correction.

An analysis of the 4-hour Relative Strength Index (RSI) reveals that the signal line has dropped to 57%, retreating from its previous position in overbought territory. Typically, this decline indicates that the bullish momentum is weakening after reaching a peak, as buyers are beginning to lose steam.

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Furthermore, on the daily chart, BNB is exhibiting negative momentum, as evidenced by the formation of a bearish candlestick, despite trading above the 100-day SMA. This situation reveals a possible contradiction in market sentiment. Meanwhile, if selling pressure continues and BNB is unable to maintain its position above the 100-day SMA, it may lead to a more significant price drop.

Finally, on the 1-day chart, the RSI has experienced a decline to 69% after rising to 62%, reflecting strong optimistic sentiment and buying pressure. Although the RSI remains above 60%, which suggests a bullish outlook, the recent drop signals that the upward momentum may be slowing down.

Key Support Levels To Watch After The Rejection

Following BNB’s recent rejection at the $605 resistance level, the critical support zone to watch is around $531, where buying interest may emerge. If the price drops below this level, it could signal a deeper bearish move, with the potential to push BNB down toward the $500 mark and beyond. In addition, a break below these key levels could intensify selling pressure and set the stage for further declines, making them crucial areas for traders to monitor in the short term.

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However, should the bulls manage to mount a comeback and push the price above $605, the asset could continue its upward movement toward the next resistance range at $635. A successful breach of this level may trigger additional gains, allowing the price to challenge other resistance points above.

Featured image from Adobe Stock, chart from Tradingview.com

Cardano (ADA) price has trended downward over the past few days. Trading at $0.34, the popular altcoin has witnessed a 3% fall since Monday. 

On-chain data suggests that Cardano may face a price correction of up to 21% in the near term. This analysis delves into why this may happen and highlights the price targets ADA holders need to watch. 

Cardano High NVT Ratio Poses Significant Risks

As of this writing, Cardano’s Network Value to Transactions (NVT) ratio, which assesses its valuation, sits at its highest level since February 2023. Per Santiment’s data, this is 12.13.

When an asset’s Network Value to Transactions (NVT) ratio spikes, it indicates it may be overvalued. It signals that its price is relatively high compared to the amount of activity on its network. Historically, an inflated NVT ratio is often followed by an asset’s price correction, as it means that the rally is not backed by actual demand. 

Read more: How To Buy Cardano (ADA) and Everything You Need To Know

The combination of ADA’s falling price and rising NVT ratio reflects negative market sentiment. Its holders are selling their assets, leading to lower transaction volume and contributing to its price decline.

Cardano’s declining Relative Strength Index (RSI) supports this bearish outlook. At press time, this indicator is in a downward trend and below the 50-neutral line at 48.57.

This RSI value indicates that buying pressure is decreasing in the Cardano market, and sellers are becoming more dominant. Traders might interpret this as a warning that the price could continue to fall, causing them to sell more, thereby exacerbating the price decline.

ADA Price Prediction: Will It Drop 21% Over the Next Few Days?

Cardano is currently trading at $0.3469 and is testing the support level at $0.3479. A rise in selling pressure could lead to a breakdown of this support, potentially causing Cardano’s price to plummet by 21% to its August 5 low of $0.27.

Read more: Who Is Charles Hoskinson, the Founder of Cardano?

On the other hand, if buying activity picks up and ADA bulls can successfully defend this support line, the coin may initiate a bullish trend toward $0.47, a high it last reached in June.