In order to better understand user behavior and the mood in relation to transactions and data protection in the blockchain, Manta Network carried out a survey in December 2020 in which the trust of users in relation to data protection in the blockchain and central and decentralized exchange was examined has been.
The 2021 Privacy & Trust on Cryptocurrency Exchanges report examines the drivers behind user trust and activity in relation to blockchain transactions and exchanges.
Download the full report here.
The 404 participants in the survey all showed some level of activity in the blockchain space. The majority of respondents identified themselves as researchers and investors and tended to have crypto-maximalist views.
Despite their positive outlook for the future role of cryptocurrency, most respondents highlight privacy concerns related to blockchain activities. 73% of respondents have either hesitated or avoided a transaction in the past because they were concerned about the privacy impact of those transactions (e.g. having their wallet address disclosed and linked to their identity).
Additionally, 84% of respondents expressed at least some level of concern that wallet addresses do not provide enough privacy. Wallet addresses act as a pseudonymous solution to protect privacy. However, once the identity is linked to the person, all assets and transaction history of that wallet address are also identified.
Respondents disagree that wallet addresses offer enough privacy. One user gave a personal example: “My friend made a lot of money with DeFi. He asked me to guess how much he had earned. I told him the exact number; he was shocked. It was because he had previously given me the ETH. “
With regard to trust and the use of the exchange, opinions diverged between centralized and decentralized exchanges. 29% of respondents said that brand awareness of key exchanges was a factor that had a positive effect on their trust and use of these exchanges.
For the decentralized exchange, the respondents cited control over their wealth as the driving factor. On the other hand, the gas fees for existing DEXs are an inconvenience that results in users avoiding trading on decentralized exchanges.