Former CIA and national security Agency (NSA) USA Edward Snowden said that the main flaw of the Bitcoin blockchain is a public registry. This is the first occasion when he openly and in detail expressed his position about the blockchain technology.
The informant expressed during the Berlin event of the company Blockstack. Despite the fact that Snowden agrees with the predictions about the “longevity” of bitcoin, he believes the currency “will last forever.”
“Everybody focuses on the fact that the transaction rate is the main drawback of bitcoins, and he is really great … but more extensive structural flaw, and is more durable, is a public registry,” said Snowden.
In his opinion, in the existing mechanism of the BTC blockchain is not enough balance between maintaining transaction history and attempts to scale the volume of information processing.
“That just doesn’t fit in the concept of strong tool for trading. It is impossible to store a complete transaction history of each user in free and to think that at this scale, all of this will work.”
Snowden’s position is due not only to technological complexity but also by the intervention of the States. Responding to a question from the audience about the exploitation of the technology by dictators, he said: “It’s not a question of whether they will use it. It’s a matter of time. And we need to develop a competitive system, so attractive that consumers worldwide will not be able to ignore them, and the government … will not be able to declare them outside the law.”
According to the informant, some government bodies already use the BTC blockchain for their own purposes. Earlier, he told The Intercept that the NSA monitors the transactions on the blockchain to identify users. Documents obtained by Snowden, also indicate that the Agency collects personal information, such as passwords, their activity on the Internet and the device IDs.