Many data breaches, such as the Cambridge Analytica scandal, have raised questions about how companies and governments relate to their data, and have increased the search for new technologies to keep companies and users confidential.
Consequently, countries and regulators quickly introduced new compliance requirements to ensure user privacy and data collection – for example, the General Data Protection Rules in Europe or the General Data Protection Act in Brazil. Parallel to this, a new trend has emerged in the search for new technologies, such as blockchain, to solve privacy issues.
In this regard, contrary to the initial view of many, blockchain technology can not only comply with the general rules of data protection, but can also help increase privacy, protect data and restore the data property of individuals. Thus, blockchain technology can be used as a privacy tool. For this reason, many players in the industry strive for leadership in this area.
Blockchain technology as a solution
Blockchain technology allows you to codify a large number of interactions, increase reliability, and eliminate the political and commercial risks associated with a process managed by a central organization. Moreover, this reduces the need for traditional (intermediary) authenticators.
In addition to blockchain architecture, you can implement different business applications and even several types together. This allows for a very efficient and continuous response. Now you can view accounts where everyone can check and confirm the accuracy of the treatment.
However, when talking to companies about creating blockchain applications, two main issues always arise: scalability and privacy.
To learn more about scalability, you can find a complete analysis here.
When it comes to privacy, there are already countless blockchain projects (which we will see in the second part of this series). Many of them are fully compatible with today's level of legislation and technology. However, you need to know what privacy is.
Are privacy and data protection the same?
Confidentiality is the ability to determine what type of information is collected from the data we provide digitally. This is an opportunity to decide what data sites are allowed to collect when buying, what type of music we listen to or when the time of day when we like to buy things.
Protection is the integrity of data after it is collected.
The first is the user's right, which is often violated in modern digital culture. The latter is managed by the data collector.
Numerous privacy corners
As Shoshan Zubov, a professor of business administration at Harvard Business School, teaches, we write her book The Age of Control Capitalism. In other words, it is a market for predicting human behavior. Large corporations and institutions summarize behavioral data, use new technologies and begin to create the most important fuel that drives capitalism as an economic system.
At this stage, privacy rights require a promising privacy structure that accurately defines privacy settings also under the control of new technologies to avoid infringement, breaches and problems.
There are seven different types of privacy: the body's privacy, correspondence, data, finances, identity, location and country. In this article, we will consider the confidentiality of correspondence, financing, location and country.
Confidentiality of correspondence and messages. The first point specifically concerns the right to communicate. In the 1980s, because of corruption, cryptography was considered a military weapon in many countries. Many of them tried to block this because they did not want people to have access to private communication.
Financial privacy. The second type of confidentiality refers to confidentiality in financial transactions and interactions. On October 31, 2008, Satoshi Nakamoto released the White Paper for Bitcoins, hoping to enter a new era of financial privacy following the 2008 economic crisis through a new technology network called blockchain.
Confidentiality of traffic (location and territory). The third type of privacy concerns freedom of movement – without constant tracking. This was discussed during the current COVID-19 pandemic. The world has been most difficult to understand that it is necessary to take into account the protection of user privacy in the early stages of product development, especially when working with data. In addition, it is worth considering the properties of blockchain as a way to increase the level of privacy.