The complete transparency of on-chain ledgers is a double-edged sword. Account balances and transaction details are crystal clear, and the impact on privacy is obvious—both individuals and institutions have nowhere to hide.

This is obviously not ideal. But conversely, if one extreme pursues privacy and completely hides transaction information, it seems to solve the problem, but in fact, it also introduces new risks. A few people might exploit this absolute anonymity to conduct illegal activities, undermining the balance of the entire system.

So ultimately, the privacy issue in blockchain is stuck in this dilemma: openness or concealment? Transparency or protection? How to find that line between the two is the real test.