with @alive_eth @rhackett

a16z crypto General Partner Ali Yahya explains why privacy — not performance — will determine the long-term winners in crypto, and how it creates powerful network effects.

In conversation with a16z crypto show host Robert Hackett, Ali lays out how privacy creates lock-in and winner-take-most dynamics — without sacrificing decentralization. They also dive into the technologies making privacy possible today, from zero-knowledge proofs to trusted execution environments, and why financial use cases will drive mainstream adoption first.

They cover:

Why blockspace is becoming a commodity
Why users tolerate surveillance in social media—but not in finance
How anonymity sets work and why secrets are hard to migrate
The real trade-offs between privacy, composability, and decentralization
The four privacy technologies shaping the next generation of blockchains

Highlights:

00:00 — Introduction
01:41 — Blockspace is becoming commoditized
03:11 — Privacy as lock-in: why secrets are harder to move than assets
06:01 — Do people actually care about privacy?
08:51 — Beyond finance: social, gaming, and private onchain apps
11:55 — Privacy zones, anonymity sets, and network effects
18:46 — Winner-take-most dynamics, explained
20:22 — What it means for crypto’s decentralization ethos
23:06 — Is privacy lock-in different from web2 lock-in?
28:31 — The privacy tech stack: ZK, MPC, TEEs, and FHE
32:13 — What this means for builders and investors
33:18 — Future considerations: Quantum computing and AI

Follow a16z crypto for more...

X: https://x.com/a16zcrypto
LinkedIn: https://www.linkedin.com/showcase/a16zcrypto/posts/
Spotify: https://open.spotify.com/show/7pMZvsNXEnb0CYcPiDQywE
Apple Podcasts: https://podcasts.apple.com/us/podcast/web3-with-a16z-crypto/id1622312549
Youtube: https://www.youtube.com/@a16zcrypto

📩 Subscribe for more industry reports, trend updates, news analysis, builder guides, and other resources: https://a16zcrypto.substack.com/subscribe/

🎙️ Like, subscribe, comment, share the show: https://a16zcrypto.com/posts/podcast/

***

As always, none of the following should be taken as investment, business, legal, or tax advice. Please see a16z.com/disclosures for more important information, including a link to a list of our investments.

Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

Why Privacy Will Be the Biggest Moat in Crypto