A16z Crypto: Privacy will become the most important competitive advantage in the crypto industry by 2026 According to The Block, Ali Yahya, general partner of a16z Crypto, stated in a blog post released on Tuesday that privacy will become the most important competitive differentiation factor for blockchain networks by 2026. Privacy is a key missing feature that hinders the comprehensive shift of global finance towards on chain development, and it is also a feature that most blockchains still lack. Although the throughput and transaction fees of various networks have become consistent, privacy alone is now enough to become a strong factor in distinguishing different chains and locking in users. The emphasis on privacy is not limited to blockchain itself. Shane Mac, co-founder and CEO of XMTP Lab, wrote in a blog post on a16z Crypto that as concerns about quantum computing intensify, the next stage of secure communication development will require a combination of decentralization and encryption technology. Mac calls for the establishment of an open protocol without a single controlling entity, where users have complete ownership of messages and identities. A16z Crypto also emphasizes the necessity of "Confidentiality as a Service" and positions privacy as the core infrastructure. Adeniyi Abiodun from Mysten Labs pointed out that institutions need to encrypt access to sensitive data, and the lack of native data access control will force enterprises to adopt centralized systems that restrict interoperability, while programmable access rules and other unlocking on chain systems. Security is also a core issue, "said Daejun Park, a crypto engineer at a16z Crypto." The 2025 DeFi attacks have exposed the limitations of the current audit led security model, and the industry needs to shift from 'code is law' to 'norms are law'.