Widespread Adoption Of Blockchain Will Not Occur If Privacy and Security Are Not A Top Priority

The first few weeks of 2021 have seen an unprecedented surge in the interest of blockchain technology and cryptocurrencies in particular: Bitcoin and Ethereum have soared to all-time-highs, while more investors than ever before have joined the market. These recent upward price movements have also drawn significant attention among mainstream outlets and institutional investors, amidst increasingly positive sentiment for the industry as a whole. This is an undeniably helpful advancement for the industry; More interest means more innovation and more investors means more capital with which to create solutions to the problems facing the industry. This boom will undoubtedly have long-lasting positive implications for the industry, however, unless the larger players take urgent action to safeguard privacy considerations, crypto investors could find themselves vulnerable. Should these vulnerabilities be substantially exploited, the new ground paved by this crypto boom could be decimated, destroying the reputation of the industry for a long time. 

Blockchain technology and cryptocurrency, in the eyes of many outside the industry, are synonymous with hacks. System vulnerabilities across many blockchains remain unsolved in some cases, and the increased amount of investors in the space also increases the likelihood of attack. If the industry is to soar to the heights commentators predict it will, there must be a wholehearted effort to solve these inefficiencies and vulnerabilities. The adoption of blockchain technology across different industries has seen the amount of data stored on blockchains themselves expand exponentially. This, in turn, increases the potential gain earned by hackers should they wish to exploit this data. With the advent of DeFi and the exploration of cryptocurrencies by large institutional investors, data is not the only thing at risk: more money than ever before is in danger of being stolen by hackers whose methods grow more sophisticated every day. While more and more legislative data protections are being enacted across the world, regulations themselves are not enough. The industry desperately needs to take action, and there is a viable solution. 

Blockchain technology enables the safe storage of individual data through decentralization, however a major concern has developed with regards to the privacy of this data. The fact is that the lack of confidentiality and privacy on blockchains hampers blockchain technology’s potential as a Web 3.0 platform that supports value transfer. Without confidentiality, the potential to disrupt middlemen, third parties, or arbitration via blockchain technology will be greatly limited by an inability to achieve compliance with established industry standards and best practices. This will lead to reduced uptake and ultimately a failure in the implementation of the great dream of blockchain that so many industry players hold. The solution? MPC technology. 

MPC technology solves for confidentiality by utilizing a network of computation nodes that compute directly on encrypted data, while maintaining zero-knowledge about the data itself. This creates a unique balance between transparency and confidentiality by using MPC , ensuring that data is protected and and if relevant the data holder may even remain anonymous. Integrating MPC technology with blockchain eliminates all confidentiality concerns, which alleviates a significant amount of the vulnerabilities plaguing the industry and all of its offshoots today, allowing them to reach their full potential. 

The crux of most arguments in favor of blockchain and cryptocurrencies, is that their implementation will allow for the creation of a more equitable society and economy. Achieving widespread adoption will be difficult, but not impossible – however, it cannot be done while there are significant vulnerabilities that stand in the way. The industry as a whole should take this time of incredible innovation and mainstream interest as an opportunity to prove this technology’s viability as a fairer alternative. By fixing the inadequacies, the blockchain industry can show the world that it is ready to be adopted as the new standard. This paradigm shift in the way we live will only be facilitated by innovation, but as this industry has shown time and time again, innovation is our language. 

 

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