a16z Crypto: Privacy will become the most important competitive advantage in the crypto space by 2026.

PANews reported on January 7th that, according to The Block, Ali Yahya, General Partner of a16z Crypto, stated in a blog post published on Tuesday that by 2026, privacy will become the most important competitive differentiator for blockchain networks. Privacy is a key missing feature hindering the full shift of global finance to on-chain development, and it's a feature that most blockchains still lack. Although throughput and transaction fees across networks have converged, privacy alone is now a powerful factor in differentiating different chains and locking in users. The emphasis on privacy extends beyond blockchain itself. Shane Mac, co-founder and CEO of XMTP Labs, wrote in a16z Crypto's blog post that, with growing concerns about quantum computing, the next stage of secure communication will require a combination of decentralization and encryption. Mac called for the establishment of open protocols where there is no single controlling entity, and users have full ownership of their messages and identities.

a16z Crypto also emphasized the necessity of "confidentiality as a service," positioning privacy as a core infrastructure. Adeniyi Abiodun of Mysten Labs pointed out that institutions need to provide cryptographic guarantees for access to sensitive data. The lack of native data access controls will force companies to adopt centralized systems with limited interoperability, while programmable access rules can unlock on-chain systems. Security is also a core issue. Daejun Park, a crypto engineer at a16z Crypto, stated that attacks in the DeFi sector in 2025 exposed the limitations of the current audit-driven security model, and the industry needs to shift from "code is law" to "standards are law."