New technologies always bring new risks to old markets. And the field of information security is not an exception. Blockchain and Bitcoin cryptocurrency have become one of the main trends in the IT market in recent years. Blockchain allows you to reduce the cost of the bureaucratic apparatus and minimize the red tape risks, ensure the data safety and security, eliminate unnecessary or redundant operations. It is not a surprise that not only authorities, but also business look out for the blockchain.
Nowadays many enterprises and a number of governments believe that blockchain can become the basis of a new trust economy built on the ground of peer-to-peer networks that are not dependent on traditional methods such as credit ratings. This can provide significant prospects in the cybersecurity field, as well as reduce the number of risks that many IT systems face. For example, many new business models are based on the collection, organization and resale of our personal data.
Blockchain technology with special protocols, that provide various degrees of anonymity and confidentiality, can protect medical, financial and other personal data, while allowing the use of this data in applications with artificial intelligence.
Personal information on the blockchain is protected by cryptography. The following are some of the ways the blockchain technology can be used to protect personal data, even if parts of this data are transferred for processing by algorithms.
A new type of encryption, called “homomorphic encryption”, provides an opportunity to perform calculations on encrypted data without prior decryption. This means that data privacy and security can be preserved when performing calculations using this data. Only users with the appropriate decryption keys can access private information about data or transactions.
There are legal issues that can humper the true anonymity using cryptocurrency and blockchain. Due to the money laundering and terrorist financing threats, many exchanges have introduced verification procedures such as AML (Anti Money Laundering) and KYC (Know Your Client). Although these requirements may vary from country to country, large exchanges are likely to consider this as a primary risk management consideration. These, include users who disclose their personal information. Of course, there is an obvious need to prevent cryptocurrency illegal actions, and they are unlikely to disappear.
Blockchain technology is generally considered confidentiality oriented and therefore can be an ideal solution to many problems that arise in more traditional storage systems. For example, private blockchains and smart contracts can provide strictly forced access to data based on permissions, when access is given only to trusted persons. This preserves anonymity on the blockchain.
Blockchain technology and its encrypted and immutable data recording system will ultimately be used to create universal digital identifiers. Blockchain security will be at such a level that users will be able to control all their personal information in such networks related to issuing banks, governments, or even employers.
The CoinGoCoin platform is protected by a private blockchain, which ensures the platform users personal information security. Using cryptography provides a high level of encryption, which makes tracking of any transaction virtually impossible. Users can send the amount they choose to the seller or recipient at his address with complete anonymity without the risk of theft. Our clients use the CoinGoCoin platform as an auction site, as a mean for making settlements on transactions with real estate, antiques, securities, and can invest in cryptocurrencies presented on the site and other assets. Using the CoinGoCoin platform for trading helps to ensure the security and anonymity of all financial transactions made through the platform.