One of the biggest challenges in blockchain that has yet to be solved is the lack of privacy and privacy of data. This is a challenge that must be met, because until a solution is found, blockchain will always be out of the question for companies that prioritize data privacy above all the benefits the technology offers.
The good news is that the past two years have seen a number of projects emerge aimed at solving the blockchain privacy problem once and for all. They aim to allow a bank or other private company to implement and operate their own blockchains while retaining control not only of the transactions that are added to them, but more importantly, of the content of 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, which aims to solve one of the biggest problems with the Web3 blockchain infrastructure – the fact that anyone can access the records stored on it.
Manta ensures privacy through the use of a technology known as “Zk-SNARK”, which is a cryptographic method that allows a party to prove they have specific information without revealing that data. Manta claims that this method enables complete end-to-end anonymity with high transaction throughput and cross-chain interoperability.
Manta uses Zk-NARK as the basis for its decentralized privacy payment and privacy token exchange protocols and is also 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 tokens” with stablecoins and other base tokens at a mint value ratio. of 1:1, with the exchange protocol used to support traders who wish to exchange these privacy tokens.
The Manta Network protocol uses zk-SNARK to exchange Polkadot and parachain tokens with their corresponding private tokens. It also allows users to pay with privacy tokens and exchange base coins for private tokens. The decentralized anonymous exchange protocol, known as Manta Swap, uses zk-SNARK and an automated Market Maker to allow users to trade private tokens anonymously. The protocol’s price formation method is consistent with that of consumer MA.
Li explained that Manta’s goal is not to create its own privacy token, but rather to privatize all other cryptocurrencies, for example Polkadot, Bitcoin and others.
“Using Manta Network, any token can become a privacy token – that’s the goal”, Li said. “By creating this as a layer one network, we are able to manage network costs as well, which will ultimately mean more inclusion in privacy activities, turning privacy from a luxury into the vision of a human right. fundamental that we are striving to achieve.”
Using a more innovative approach to the problem of data privacy on the blockchain, ParallelChain came up with the idea of interoperable public and private blockchains to enable broad interaction while ensuring the security of corporate data.
ParallelChain’s secret sauce is its proof-of-immutability algorithm for validating transactions, in which any node is free to write its own data, which can only be identified by a hash value stored on the hash vault. of this node.
In this way, the data written by the node remains intact until it is relevant for a transaction involving another node. At this time, the data should be checked to ensure that it has not been tampered with. ParallelChain claims that its unique method helps ensure data privacy compared to other blockchains and can be useful in various industries, ranging from fintech and smart transportation to airports, factories or hospitals.
ParallelChain believes its proof of immutability is very attractive to businesses because it will allow them to deploy and operate confidential blockchains that prevent other users from seeing transaction data. However, at the same time, it remains possible to validate any transaction on the blockchain, without seeing this information.
ParallelChain’s decentralized and anonymous approach to data security also helps solve a number of problems that other blockchains face. It comes with bespoke apps like PreventativeChain that help protect against insider threats by monitoring employee behavior to anticipate data leaks. Meanwhile, 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 case is accountability. ApprovalChain is an application that documents every activity of a project, in an immutable way, ensuring that each task has only been validated as complete once all parties involved have agreed.
For 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 is built on what’s known as ZK-Rollup technology, or zero-knowledge proof, which allows network participants to verify that the ledger is valid without knowing the contents of its transactions.
Here’s a simple explanation of how it works: John wants to convince Susan that he knows the correct password to open a keypad door. He doesn’t reveal the password, but he unlocks the door using the keypad lock. It’s a compelling argument that John does indeed know what the password is, without him needing to tell anyone the exact combination of numbers. So John has convinced Susan that her information is correct without revealing any part of it.
Imagine there is 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 gave Alice a convincing argument that he knew the password, without directly revealing what it was. In other words, Bob has convinced Alice that her statement about knowing the password is true, without revealing any additional knowledge about the statement.
Findora works the same way, using ZKPs to prove transactions on its blockchain without revealing any of the actual data. By doing so, it enables all sorts of services to be run on its blockchain that process sensitive data, including banking applications, investment funds, lending markets and more.
Findora says the benefit for financial services is that they can take advantage of the blockchain’s built-in transparency while remaining compliant and protecting user data.
Elastos is not a privacy-preserving blockchain at all. Rather, it is about building a comprehensive ecosystem that aims to completely isolate decentralized applications from the internet to ensure the integrity of user data.
The blockchain is actually just one of four components that make up Elastos’ intelligent web infrastructure. The Elastos Blockchain can be considered as an identification layer, which provides a unique identifier for each person, computer, smartphone and application that accesses its intelligent Web.
The Elastos runtime serves as an operating system, capable of running on any device, which remains disconnected from the internet at all times. This is where DeFi applications and data on Elastos are hosted. The Elastos Carrier protocol, on the other hand, serves as an intermediary that connects to the web on behalf of applications and users, allowing these applications to communicate with others.
The final component is the Elastos SDK, which gives developers a way to access Elastos Carrier and user identities.
With Elastos, decentralized applications do not run on the web itself. They run entirely on Elastos – independent of the internet – ensuring users are in control of their own data and eliminating the risk of that data being stolen by malware or other types of web attacks.