Solana Founder Says Privacy Alone Isn’t Enough to Drive Crypto Adoption
Solana Labs founder Anatoly Yakovenko—better known as “Toly”—doesn’t think privacy is the magic bullet some crypto enthusiasts make it out to be. In a recent thread on X, he argued that while privacy has its place, it’s not enough on its own to change how people interact with crypto.
“There’s a lack of product-market fit for privacy,” he wrote. “By itself, it’s not a killer feature that would change user behavior.” His take sparked debate, especially among those who see privacy as a non-negotiable in decentralized finance.
Why Privacy Might Not Be the Answer
Yakovenko’s point isn’t that privacy is useless—just that it doesn’t automatically solve real-world problems in a way that drives mass adoption. Plenty of crypto features sound great in theory, he suggests, but if they don’t offer clear, everyday utility, they won’t stick.
Someone in the thread pushed back, pointing out cases where privacy could’ve prevented disasters—like the Hyperliquid whale incident, where a massive position triggered cascading liquidations. “Aren’t there trades where privacy would help?” they asked.
Yakovenko’s response was blunt: “Complaining about a problem doesn’t mean there’s product-market fit for the solution.”
Former Solana Head of Growth Matty Taylor seemed to agree in an earlier post, arguing that sustainable revenue, liquidity, and demand matter more than privacy when it comes to long-term success.
Where Solana Stands on Privacy
Solana does have privacy features, but they’re not front and center. Its Token-2022 standard allows for confidential transfers and encrypted balances—though users have to opt in, and migrating tokens isn’t always seamless. There are also early-stage projects like Elusiv and Light Protocol experimenting with zero-knowledge proofs.
Still, compared to Ethereum, Solana’s privacy ecosystem is playing catch-up. Ethereum doesn’t bake privacy into its base layer either, but it has a more developed network of privacy-focused Layer 2 solutions, from zk-Rollups to protocols like Tornado Cash.
Yakovenko’s stance might ruffle feathers, but it raises a fair question: if privacy isn’t enough on its own, what *actually* gets people to use crypto? Maybe the answer isn’t as simple as we’d like.
