Many people wouldn’t have thought that an intangible technology could give serious competition to traditional finance.
Blockchain, a distributed ledger which maintains an ever-growing number of data blocks that contain batches of transactions without tampering has transformed finance for the better.
Its potential and limitations are vast and extensive. Blockchain technology provides much-needed solutions in the privacy and security of user data.
Blockchain technology is known for its privacy features. It’s important to discuss it at a high-level, especially with privacy-oriented Blockchain firms such as Manta Network and PARSIQ.
This article will discuss the top blockchain projects that offer privacy solutions and other industry-leading challenges.
Blockchain Can Solve the World’s Growing Privacy Problem?
Blockchain technology holds a lot of promise, but there are still many questions and obstacles to mass adoption.
One of these questions is whether blockchain can address the growing privacy concerns that people are used to with traditional systems. We’ve seen hacks on various crypto exchanges, which raises questions about the security and reliability of blockchains.
Both blockchain experts and critics might agree that blockchain is far more secure than traditional systems in this area. Blockchain may be more popular because of its ability to protect personal data and privacy.
Experts believe that blockchain technology will eventually replace passwords and usernames.
Blockchain will achieve this by allowing the world to have a personalized, encrypted digital identity that can be used to manage all aspects of their online private/personal information.
One of the biggest problems with blockchain-based personal privacy protection is that privacy and protection can mean different things depending on how they are applied.
What Blockchain Technology and Its Users Means for Privacy and Protection
One, privacy refers to a user’s ability to control what information blockchain-based or other tech platforms may collect about them. Consider what happens when you visit certain websites. These websites may collect data about songs and videos that you stream, products that you purchase, and times you do this.
Privacy is not about how secure a user’s data is after it has been collected by authorized parties. Blockchain technology is responsible for ensuring privacy is protected and maintaining trust.
Although users can’t delete data that blockchain technology or its platforms have collected, such as visits to certain sites, they can disable access to the relevant node of the Blockchain.
This ensures that no other party can know that the user visited the site in question. This is just one way that blockchain technology can help protect user privacy and their data/information.
There is great potential in data protection and privacy, and some blockchain-based platforms could be leading us to a future that includes platforms and protocols that are truly privacy-preserving.
Let’s take a look at the most prominent privacy-focused projects and learn how they do it.
How do Blockchain Platforms Deal with Data Silos
Data silos can be a hot spot for hackers and pose high-security threats. When internet users sign up for platforms or services, they create data silos. These services accumulate millions of users and often have sensitive user data.
Individual control over very important aspects of user data and the sharing of it is essential. This is something that most blockchain-based services ignore.
Blockchain technology is also known for its three key features: being anonymous, verifiable, and revocable. However, not all platforms that use blockchain technology can deliver these three essential features.
, a blockchain identity protocol, is built on the Polkadot & Kusama ecosystems. It issues web 3.0 anonymous, self-sovereign and verifiable claims based credentials.
It is privacy-oriented and helps users verify their online identities. It does this by removing the need for companies collecting sensitive user data or passwords.
The Kilt protocol is more than a privacy-preserving platform. It’s a move to include the wider software industry as well as firms seeking increased data sovereignty and trust in web3.
One of the benefits of Kilt is its universal model that allows objects, machines and individuals to claim arbitrary attributes. They can also validate their attributes with trusted entities.
Kilt provides relevant mechanisms that allow claim holders to take control of their data. This innovative feature allows claim holders to store and select information, as well as their recipients.
Users can access the Trust Market for Attesters through the blockchain protocol. Trusted organizations can now affix prices to relevant attestation work and get paid.
Privacy is a big talking point in the blockchain space as users, and key actors yearn for more privacy-oriented platforms.
In more ways than one, privacy is undoubtedly one of the main selling points of blockchain technology, and it deserves all the attention and innovative improvements it can get.
Platforms and protocols Kilt, Manta Network, and PARSIQ are closest to the ideal we expect from privacy-oriented solutions.