Institutions are reluctant to adopt Web3 and distributed ledger technologies due to the transparency inherent in public blockchains. Avidan Abitbol, project director for the Data Ownership Protocol, stated that the risk of theft and targeting by scammers, along with potential market manipulation, hinders institutional engagement. Institutions desire privacy regarding their payments and workflows, as public visibility of holdings can influence market behaviors and expose them to various risks. The need for privacy not only affects cryptocurrencies but also extends to vital sectors like healthcare, where confidentiality is crucial. Notably, innovations such as selective disclosure through zero-knowledge technology and features from oracle providers like Chainlink aim to enhance blockchain privacy, which could support wider institutional adoption.

Source 🔗