Blockchain technologies no doubt will increase transparency and security but I assume on the other hand it will also raise issues of privacy and identity. Though this can be controlled by using private and public keys, there are still some chances to hit it. What is your take on it?
Dear Deepanjal Shrestha,
Hopefully, the info below is informative enough:
Is privacy an issue in blockchain?
One typical area of concern with blockchain data privacy is around digital currency wallets and users' lack of awareness of data privacy risks such as when renaming the wallet to something personal such as a password which can be visible to everyone on the public blockchain.
How does a blockchain support data privacy?
Blockchain transactions allow users to control their data through private and public keys, allowing them to own it. Third-party intermediaries are not allowed to misuse and obtain data. If personal data are stored on the blockchain, owners of such data can control when and how a third party can access it.
Can blockchain comply with privacy regulations?
Private blockchain which restricts and regulates network participation appears to be a more preferable fit when it comes to ensuring compliance with data privacy laws. ... Blockchain network is a decentralized system with each node / miner (i.e. network participant) spread all over the world.
How does Bitcoin protect privacy?
Bitcoin is an important, empowering technology. Using a Bitcoin account with a pseudonym protects your right to remain anonymous on the internet. It allows anonymous or pseudonymous fundraising. Groups can collectively control Bitcoin accounts and choose to either hide or reveal financial information at will.
Why is crypto privacy important?
The bright side of crypto privacy The technology that protects dark web users from being revealed can make it harder for them to attack users. ... Cryptocurrencies help educate internet users worldwide regarding the level of security they should demand from any online service they use.
What technique is most often used to provide confidentiality for data stored in public Blockchains?
The records on a blockchain are secured through cryptography. Network participants have their own private keys that are assigned to the transactions they make and act as a personal digital signature.
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https://www.sciencedirect.com/science/article/pii/B9780128198162000046
https://dl.acm.org/doi/abs/10.1145/3316481
https://ieeexplore.ieee.org/abstract/document/7966963
https://ieeexplore.ieee.org/abstract/document/7966963
One approach to discussing privacy is through data privacy principles. Generally accepted "standard" list of these principles are those found in the GDPR. While blockchain clearly has some privacy promoting features, there are two privacy principles that may not be very well expressed through this technology.
First, data minimization. Because blockchain keeps a permanent, immutable record of every interaction it is effectively impossible to delete data. In certain contexts this could have very negative consequences for privacy and identity. For example, if someone has a criminal conviction expunged from their record, it would not be possible to achieve that through a blockchain-based identity management system.
Second, accountability. By being a distributed ledger, there is at least a reduction, if not an elimination, of accountability for parties collecting and using data found on the blockchain because they are not also storing it. For example, image a university decides to create a record on the blockchain of someone receiving their degree. Later, it is discovered that the person obtained their degree fraudulently and the university decides to revoke the degree. Because the blockchain record is immutable, the university's ability to account for the revocation is negatively impacted.
The redundancy of public blockchain makes it incredibly secure. may you can focus on this sentence, and you will understand the privacy of the blockchain.
best wishes.
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