Copy link
Increase text size
Decrease text size
Link copied

Blockchain only offers limited amount of privacy with ‘pseudonymity’, experts say

Image by mmi9 from Pixabay

Sun, 26 Apr 2020, 05:31 am UTC

Blockchain has started over a decade ago but it still fails to deliver complete privacy.

Tracking crypto transactions are getting easier for law enforcement agents prompting some to wonder how blockchain works in terms of protecting one’s privacy. According to experts, users’ can’t expect complete privacy from blockchain because it’s not built for that.

“Public blockchains were not created for privacy,” Pavlo Radchuk, the blockchain security lead at Hacken told Cointelegraph.

He explained that blockchain uses pseudonymity which is not enough in protecting one’s identity. Active Bitcoin and Ethereum users can still be traced because the websites they visit keep their IP address, delivery physical address, receiver name, and more.

“The main issue with pseudonymity is that it does not hide the user profile including: transaction amounts, expenditure habits, time of payments, etc. Pseudonymity also does not attempt to hide the binding between the user profile and the user’s IP. All these issues make it relatively straightforward to deanonymize users in systems that rely on simple pseudonymity,” said Ghassan Karame, the manager and chief researcher at Security Group of NEC Laboratories Europe.

Hartej Sawhney, the CEO and co-founder of cybersecurity agency Zokyo Labs gave a grim example to show the risks in the blockchain. According to him, a thief with a little effort can trace an IP address, show up at one’s house, and apply rubber hose cryptography to get the keys.

“We don’t believe that blockchain has the privacy benefits that I think some of its supporters first hoped,” Catherine Tucker, a professor of management at MIT Sloan and co-founder of the Cryptoeconomics lab told Cointelegraph.

Tucker added that sensitive information like health care records should not be stored on the blockchain, contrary to what most want. She explained that she’s not worried about the data that tells advertisers she wants a particular pair of shoes that day. However, she’s concerned with the data that have persistent consequences to her economically and in the future.

“The danger of blockchain is we may be creating immutable data that we have no idea what the consequences of it will be for an individual 10 years in the future,” she added.

Meanwhile, AirAsia just launched a blockchain-based air cargo network called Freightchain. It is intended to help connect uneven supply and demand amidst a rapidly evolving environment that requires trust and transparency.

TokenPost | [email protected]

<Copyright © TokenPost. All Rights Reserved. >

To leave a comment, please sign in.
  • andrewjabel
  • 2020.06.01 15:51:05
Its actually my pleasure to create this awareness of binary option(online) trade which i have invested in for years and was not profitable and encouraging until i got the best strategy for calculating the actual time to invest in other not to lose my money. now i make $15000 every week." make money from that strategy"for further information contact me on>>>>> [email protected] thank you ..............................................................
  • 0
  • ·
  • 0
  • Moses
  • 2020.04.28 01:39:59
I am a cryptocurrency trader and i make over 200% daily, If you are interested,i can teach you how to trade and also help you achieve your goal in life with crypto i can turn
$4500 into $35000 in less then four weeks,now that bitcoin has low prices...please note that cryptocurrency trading is bitcoin unlike binary and Forex,bitcoin is traded for altcoins also you can reach to me if you are new to bitcoin and to give you more info and guideline on how to invest smartly, this is opportunity life time knocking on your door ???? inbox me for more info....contact me on WhatsApp +1(206)-742-5358 thank you to you all and God bless you .
  • 0
  • ·
  • 0
More
  • Bitcoin (BTC) $10,144.30 (+6.10%)
  • Ethereum (ETH) $251.43 (+5.69%)
  • XRP (XRP) $0.224600 (+0.84%)
  • Bitcoin Cash (BCH) $264.90 (+8.84%)
  • Bitcoin SV (BSV) $206.52 (+6.06%)
  • Bitcoin (BTC) $10,144.30 (+6.10%)
Feb 21, 2020 (Friday)
12:01
Paxos launches blockchain-based securities settlement solution with Credit Suisse and Instinet
12:00
Brazil to launch new payment system in response to cryptocurrencies
11:59
Digital currency exchange Coinbase Pro lists Kyber Network token
11:57
Norwegian Air to soon start accepting crypto payments
10:21
Swedish central bank begins CBDC pilot with Accenture
09:51
Italian soccer team Juventus launches ethereum-based digital collectibles with Sorare
Feb 20, 2020 (Thursday)
14:16
Telecom companies complete cross-carrier mobile payments using blockchain
11:53
National Stock Exchange of Australia to develop DLT-based digital securities trading platform
11:00
South Korean ICO project discontinued, to return $7.5M to token holders
10:36
Samsung maintains crypto support in soon-to-launch Galaxy S20
09:41
BIS appoints Innovation Hub heads to lead Singapore and Switzerland
09:15
Coinbase becomes first crypto company to receive Visa principal membership
08:59
Dubai Economy and six banks launch KYC Blockchain Consortium
08:26
Crypto Technicals: ETH/USD under downside pressure after 'Bearish Engulfing' pattern
07:12
Tim Draper buys $1M worth of Aragon Tokens to create digital courts for DAOs
06:13
Renewable energy firm Acciona commits to take CBI’s blockchain-based carbon credits trading platform global
05:02
Crypto Technicals: BTC/USD trades below 21-EMA, break below 4H 200 MA (9386) to trigger further downside
04:56
Crypto exchange Coinfloor to launch a simplified bitcoin buying service
04:35
Indonesia’s customs department joins IBM- Maersk blockchain shipping platform “TradeLens”
Feb 19, 2020 (Wednesday)
12:46
Crypto custodian BitGo acquires digital securities startup Harbor
Subscribe to the TokenPost newsletter!
Don't show me this again today.
Back to top
Copyright ⓒ TokenPost. All Rights Reserved.
PUBLISHsoft