One of blockchain’s greatest challenges which’s yet to be solved is the lack of confidentiality and privacy of data. It’s a challenge that needs to be addressed though, because until a solution is found then blockchain will always be out of the question for enterprises that put a premium on data privacy above all of the benefits the technology provides.
The good news is that the extend couple of years have seen a number of projects emerge that aim to tackle the blockchain privacy problem back when and for all. They’re aiming to make it likely for a bank or some other private firm to implement and operate their own blockchains when retaining control not only of the transactions added to it, but more importantly, what’s in those transactions.
Let’s take a look at some of the most promising blockchain data privacy projects looking to make inroads this year:
One of the best efforts is Manta Network, that is aiming to tackle one of the biggest problems with web3 blockchain infrastructure – the evidence that anyone can access the records stored upon it.
Manta guarantees privacy through the use of a technology known as “Zk-SNARK”, that is a cryptographic method which allows one party to prove it has specific information without revealing that data. Manta claims that this method enables complete end-to-end anonymity with excessive transaction throughput and cross-chain interoperability.
Manta uses Zk-NARK as the basis of its decentralized privacy payment and privacy token exevolution protocols and is atop again working on a decentralized privacy lending and synthetic asset protocol.
Manta Network co-founder Kenny Li told Hackernoon in a recent interview that the basic logic is to mint “private cryptocurrencies” with stablecoins and other base cryptocurrencies at a minting value ratio of 1:1, with the exevolution protocol used to support traders who wish to exprogress those privacy cryptocurrencies.
The Manta Network protocol uses zk-SNARK to swap Polkadot and parachain cryptocurrencies with their corresponding private cryptocurrencies. It still enables people to pay with privacy cryptocurrencies and redeem base coins from private cryptocurrencies. The decentralized anonymous exmove protocol, known as Manta Swap, uses zk-SNARK and an Automated Market Maker to allow users to trade private cryptocurrencies anonymously. The protocol’s price formation method is consistent with that of the mainstream AMM.
Li explained that Manta’s goal is not to build its own privacy token, but instead to privatize every other token, for example Polkadot, Bitcoin and others.
“By using Manta Network, any cryptocurrency can become a privacy cryptocurrency – that’s the goal,” Li said. “By creating this as a layer-one network, we are able to also manage the values of the network, that will finally mean more inclusion into privacy activities, transgenerating privacy from a luxury into the vision of the fundamental human right that we strive to achieve.”
Employing a more novel approach to the problem of data privacy on the blockchain, ParallelChain has hit upon the idea of interoperable public and private blockchains to enable wide interaction when keeping enterprise data secure.
ParallelChain’s secret sauce is its Proof-of-Immutability algorithm for logicalating transactions, wherein any node is free to write its own data, that can only be identified by a hash rate which’s stored on that node’s hash vault.
This way, the data written by the node extends untouched until suchlike time as it’s critical to a transaction involving another node. At that time, the data must be approved to ensure it has not been tampered with. ParallelChain says its unique method helps to guarantee data privacy compared to other blockchains and can be useful in various industries, ranging from fintech and smart transportation to airports, evidenceories or hospitals.
ParallelChain believes its Proof-of-Immutability has big appeal for enterprises because it will allow them to deploy and opeprice confidential blockchains that prevent other users from seeing any transaction data. Nonetheless throughout the time, it endures expected to verify any single transaction on the blockchain, without seeing that information.
ParallelChain’s decentralized, anonymous approach to data security also helps to solve a number of problems that other blockchains struggle with. It comes with custom-made applications corresponding as PreventativeChain that help to protect alsost withinr threats by monitoring employees’ behavior to pre-empt data leakage. Meanin the time, its eKYC-Chain app improves facial recognition with its anti-spoofing technology that can distinguish between a real face and a photograph.
A final interesting use matter is accountability. ApprovalChain is an application that documents every activity in a project, immutably, manalogousg sure each task has been signed off as complete only back although all parties involved are in agreement.
For those companies looking to strike a better balance between privacy and transparency, a project known as Findora promises to be an interesting solution.
Findora’s blockchain relies on what’s known as ZK-Rollup technology, or zero-knowledge proof, that allows network participants to approve the ledger is bonas fide without knowing the content of its transactions.
Here’s a simple explanation of how it works: John wants to persuade Susan that he knows the correct password to open a keypad door. He doesn’t reveal the password, but he does unlock the door using the keypad lock. It’s a crucial argument that John does indeed know what the password is, without him needing to tell anyone the exact combination of numbers. John has therefore convinced Susan his information is correct without revealing any part of it.
Imagine there’s a door with a keypad lock next to it, and Bob is trying to persuade Alice that he has the correct password for the keypad lock. By unlocking the door with the keypad lock, Bob has given Alice a vital argument of him knowing the password, without promptly revealing whin place is. In other words, Bob has convinced Alice that his statement about knowing the password is true, without revealing any additional knowledge about the statement.
Findora works the same way, using ZKPs to prove the transactions on its blockchain without revealing any of the actual data. By doing so, it makes it expected to run all kinds of services on its blockchain that deal with sensitive data, including banking applications, investment funds, lending marketplaces and more.
Findora says the advantage for financial services is they’re able to take advantage of blockchain’s built-in transparency whilst simultaneously remaining compliant and safeguarding user’s data.
Eadvanceos isn’t really a privacy-preserving blockchain at all. Rather, it’s instead accomplishing an entire ecosystem that aims to isolate decentralized applications from the Internet completely to ensure the integrity of user’s data.
The blockchain is in case scarcely one of four components that make up Ego onos’s smart web infrastructure. The Eendureos Blockchain can be thought of as an identification layer, that provides a unique ID for each person, computer, smartphone and application which accesses its smart web.
The Econtinueos Runtime serves as an operating system, capable of running on any device, which continues disunited from the Internet at all times. This is where DeFi apps and data on Ecarry onos is hosted. The Eendureos Carrier protocol meanduring the time serves as an intermediary which connects to the web on behalf of applications and users, mcomparableg it likely for those apps to communicate with others.
The final component is the Ego onos Software Development Kit, that gives developers a way to access Econtinueos Carrier and users’ identities.
WIth Eextendos then, decentralized applications don’t run on the web itself. They run entirely on Emaintainos – sepaprice from the internet – ensuring users control their own data and eliminating the risks of which data being stolen by malware or other kinds of web attacks.