Blockchain as a competent solution to privacy

Blockchain as a competent solution to privacy

Privacy of data has become a major concern to companies as a number of data violation incidents have taken place in recent time including Cambridge Analytica scandal. Companies are trying to develop their technologies to ensure privacy.

Regulators and countries are coming up with different regulations to prevent data breaching-like take the example of introduction of General Data Protection Regulation in Europe and General Data Protection Law in Brazil. Some are thinking blockchain technology to be a possible solution to data violations.

Blockchain can be up to the mark when considering data protection but it’s not compatible with the GDPR. Considering the privacy issue, many companies are implementing blockchain solution.

Blockchain-as a solution

Blockchain voids the need of intermediaries, cuts off risks and codify a major number of interactions increasing reliability. Different kinds of applications of several companies can be executed atop blockchain. Scalability and privacy these two issues are usually considered while creating applications in blockchain. An unknown huge number of blockchain projects are in development for implementation.

Whether privacy and data protection are different?

Privacy is the aspect of information technology that deals with the ability an organization or individual has to determine what data in a computer system can be shared with third parties.

Protection refers to the safety of data after collected. Privacy is a user’s right on the other hand data protection is under the data collector’s responsibility.

Privacy aspects

Utilizing new technologies, corporations and large companies have been collecting behavioral data and have commenced to develop the necessary fuel that drives capitalism as an economic system. A forward-looking privacy has become a vital necessity to avoid invasions, violations and problems.

Among seven different kinds of privacy, we will go through only some:

1: Privacy of correspondence and communication: Communicating privately has become a vital concern. Cryptography was deemed as a military-grade weapon in many countries in 1980s due to corruption. But because of privately communication issue, many of them tried to inhibit it.

2: Financial privacy: Bitcoin has come to the space with the intention to increasing the financial privacy through blockchain technology.

3: Privacy of movement: The freedom of movement refers to be free from being constantly tracked. COVID-19 has shown people the necessity of privacy protection especially when dealing with data. Maybe, blockchain will be able to dos so.

Demand of privacy in all area

Privacy issue is highly maintained when it is the concern about companies and consumers. They try to secure every single transaction with privacy. Companies using blockchain may have access to specific data which is limited to other participants. Consumers are more cautious to protect their identity, credit card information or other sensitive data to avoid fraud or identity theft. Another issue is that there are many people who intentionally sacrifice their privacy for free access.

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