These next-level ambitions are all promising and important to explore. However, I think more people need to start paying attention to the basics when it comes to privacy.
Have you tried passing your wallet/browser through mitmproxy or burpsuite and checked out just how much information is broadcasted to various endpoints in the cloud? If you use a browser extension wallet, you may be surprised to see traffic that is not visible in Chrome/Firefox developer tools Network tab.
Now see how much you are actually able to prevent leaking by using the wallet settings. Disable any analytics, use your own RPC node, disable optional third-party features, and try again. Compare reality to the privacy policy of the wallet.
The state of privacy in mainstream wallets have gone increasingly worrying over time and I don’t see much talk about that. The features discussed in this thread don’t mean much if balance- and history requests in practice use proprietary unconfigurable vendor servers. Addressing that is not an unsolved technical issue but one where wallet vendors have faced little scrutiny and pushback from the community.
Some deviations and options:
- Konkret Wallet is one budding initiative showing a different approach to the browser wallets.
- Trezor actually provides the option to do self-hosted and private account-indexing via BlockBook (but on the other hand their connector module is idiomatiacally loading from the cloud…)
- TrueBlocks is a great way for expert users with the resources to self-host indexing
All are pretty obscure if not neglected. I think we need to start practice what we preach and addressing the here and now while we consider future possibilities.