TechFlow news, December 23 — According to a post by a16z general partner Ali Yahya, privacy will become the most important moat in the cryptocurrency space. Ali stated that because sensitive information is difficult to migrate, privacy features are sufficient to differentiate new blockchains from others and create on-chain lock-in effects. When users are on public blockchains, they can easily transact with users on other chains, but on privacy-focused chains, the chosen chain matters more, as users are unlikely to risk exposing themselves by moving to another chain once they have joined one.
Ali believes this will lead to a winner-takes-all scenario, where a few privacy-centric blockchains will capture the majority of the cryptocurrency ecosystem's market due to privacy being critical for most real-world use cases.
