# Why privacy will be the biggest moat in crypto

> with @alive_eth @rhackett Most blockchains are starting to look the same. So what actually creates defensibility in crypto? 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 c...

- URL: https://a16zcrypto.com/posts/podcast/privacy-moat-crypto
- Authors: [Ali Yahya](https://a16zcrypto.com/team/ali-yahya), [Robert Hackett](https://a16zcrypto.com/team/robert-hackett)
- Published: 2026-01-30
- Updated: 2026-06-19
- Focus areas: tech trends
- Tags: DeFi, mental models & frameworks, MPC (multi-party computation), network effects, privacy, TEEs (trusted execution environment), FHE (fully homomorphic encryption), annual Big Ideas, podcast, finance
- Format: podcast

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[Embedded media](https://player.simplecast.com/bc020bde-8d2c-4206-b398-449bd308a6b1?dark=true)

[Embedded media](https://www.youtube.com/embed/gj_wFzWv5Fk?feature=oembed)

**with [@alive\_eth](https://x.com/alive_eth) [@rhackett](https://x.com/rhackett)**

Most blockchains are starting to look the same. So what actually creates defensibility in crypto?

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

Read Ali’s full post [here](https://a16zcrypto.com/posts/article/privacy-trends-moats-quantum-data-testing/).

**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

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Source: [Why privacy will be the biggest moat in crypto](https://a16zcrypto.com/posts/podcast/privacy-moat-crypto) — a16z crypto. Full archive: https://a16zcrypto.com/posts