A completely confidential base layer would compromise Bitcoin's core value proposition: transparent, trustless mathematical auditability of the 21 million supply limit. In systems with encrypted balances, undetected inflation bugs remain a catastrophic existential threat. The cypherpunk solution is separating concerns: preserve rigid transparency on Layer 1 for universal supply verification, while achieving transactional unlinkability through collaborative protocols at the wallet layer. Using non-custodial WabiSabi implementations—such as Wasabi with custom coordinators or Ginger Wallet with its out-of-the-box coordinator —provides practical privacy without sacrificing on-chain verifiability or inviting targeted regulatory delisting.
A completely confidential base layer would compromise Bitcoin's core value proposition: transparent, trustless mathematical auditability of the 21 million supply limit. In systems with encrypted balances, undetected inflation bugs remain a catastrophic existential threat. The cypherpunk solution is separating concerns: preserve rigid transparency on Layer 1 for universal supply verification, while achieving transactional unlinkability through collaborative protocols at the wallet layer. Using non-custodial WabiSabi implementations—such as Wasabi with custom coordinators or Ginger Wallet with its out-of-the-box coordinator —provides practical privacy without sacrificing on-chain verifiability or inviting targeted regulatory delisting.