Privacy protection calculations on the blockchain can prevent violations

In the 19th century, the giants of American industry gained fame by taking advantage of their control over tangible resources such as oil and steel. Today, corporate giants are trying to obtain higher wealth by collecting consumer data. But now, as then, the benefits of accumulating such resources are accompanied by a major business risk: spillover.

Like oil spills, data leaks—whether accidentally or due to hacker interference—can cause significant financial, legal, and political harm to companies and consumers. Think about the consequences of Facebook Earlier this year. In April, the phone numbers, full names, email addresses, and locations of 533 million users were shared on a hacker forum, arousing strong protests from consumers and the government.

related: Encryption technology at risk after Facebook leak: how hackers use data

Facebook is not the only one facing a security dilemma. In 2020 alone, there will be 1,001 Report Data breach, more than 155 million people were adversely affected by the data breach. For companies, these leaks are an expensive and time-consuming problem. A 2020 report from IBM Established The average cost of a data breach is as high as $8.64 million, and it usually takes 280 days to resolve, although these metrics vary by industry.

Despite the cost and public relations issues, many companies will argue that the benefits of data provision are worth the risk of millions of dollars.Research shows that big data Empowerment Companies make better strategic decisions, reduce costs, improve operational processes, and better understand customers-all of which help increase profits.

Blockchain is the savior

Avoiding security risks by not using data is not an option at all. So, the question is: How can companies take full advantage of the competitive advantages provided by data, while not exposing themselves to undue risks of financial, legal, and public relations disasters?

The answer lies in privacy protection calculations on the blockchain.

This solution seems counterintuitive at first glance. After all, blockchain transactions reach consensus in public and aim for transparency and public access-these two characteristics run counter to the company’s data security goals. This is the blockchain paradox: users can share data to gain new insights that benefit society as a whole, or they can isolate data in protected islands that protect personal privacy.

related: The data economy is a dystopian nightmare

In recent years, the emergence of privacy-preserving computing has proposed a third option. Through verifiable calculations, the audit results can be disclosed to prove the correctness outside the main blockchain network, thereby eliminating the risk of exposure caused by transparency. In addition, by integrating privacy protection computing as a second-layer solution and outsourcing work to external nodes, this security measure can be applied without adding unnecessary burden or cost to the company’s main blockchain network.

In practice, integrating such security measures means that companies can have their own cake and eat it. By incorporating blockchain into data management strategies, companies can significantly reduce the risk of violations and their related consequences.

Although research specifically supporting the value of second-layer privacy protection calculations is limited, preliminary literature on blockchain-based security shows the potential of this technology as a privacy measure. 2020, first instance Publish Found in sustainability:

“Integrate [blockchain technology] The confidentiality and integrity of data can be ensured in the industry and should be enforced to protect the availability and privacy of data. “

However, companies that adopt privacy-preserving computing and other blockchain-based security measures not only benefit from increased security, but also have a transformative opportunity to strengthen interoperability in industries that have historically been hindered by data insecurity threats. .

Take healthcare as an example

In this area, data sharing among providers, health networks, and third-party researchers is essential. However, patient privacy regulations make information transmission difficult.It’s worth noting that many healthcare providers Stuck Outdated fax machines have been used for many years because the interoperability of their advanced electronic systems is not sufficient to transmit patient information securely.

related: Blockchain will revolutionize healthcare – not soon

These silos have a chilling effect on healthcare innovation.As a team of German scientists famous In a paper in Nature Partner Journals of Digital Medicine in 2019:

“Hidden in isolated databases, incompatible systems and proprietary software, [healthcare data is] Difficult to communicate, analyze and explain. This slows down medical progress because the technologies that rely on these data—artificial intelligence, big data, or mobile applications—can’t reach their full potential. “

The potential the team is referring to is huge. In recent years, artificial intelligence researchers have used patient data to develop very accurate algorithms to support doctors in the diagnosis process.For example, last year, researchers Trained A neural network that connects it with more than 16,000 remote dermatology cases to identify the 26 most common skin conditions. It turned out that the algorithm was as accurate as a trained dermatologist.As a reviewer review this project:

“Although the tool has not yet been approved for clinical use, deep learning-based diagnosis and clinical decision support tools are gaining recognition in many medical professions and are expected to change our experience of medicine.”

It is ready in theory, but in practice, data (in) security is an obstacle to progress. Building remote dermatology tools requires researchers to utilize large amounts of data. However, sharing even a small group of sensitive patient data is a privacy nightmare.

Think about the backlash that occurred when Google partnered with Ascension, a large hospital chain last year. emission “Project Nightingale”-a tool designed to search for patient information. The news immediately sparked strong backlash, with critics criticizing the two for sharing confidential patient records. Google and Ascension refuted the criticism, arguing that their data sharing complies with federal data privacy rules.However, as a professor at Stanford University shared In an interview with The Wall Street Journal:

“Some people think that federal laws are outdated, saying that the protections of the law have not kept up with the growing demand for patient data in the technology industry.”

The point raised here is subtle. The problem is not that the company does not comply with privacy regulations, but that the public has no confidence in these security measures. If health companies really want to use data boldly to maximize innovation, they need to stop circumventing legal provisions and begin to address consumer fears positively.

Imagine if healthcare providers had access to data security measures and used second-tier verifiable computing to securely share patient data without putting consumers – or their organizations – at risk. The security and guarantees provided by technology will revolutionize the well-known games. It will enhance innovation capabilities, prevent malicious threats and reduce the risk of data leakage.

related: The role of decentralized networks in a data-rich, hyper-connected world

Takeaway

A common mistake that business leaders make is that the benefits provided by blockchain are limited to finance. However, the security provided by blockchain may prompt a large-scale shift in people’s views on the possibility of data sharing. Privacy protection computing can eliminate fear. It enables companies to imagine what they can achieve if they can make the most of their data without worrying about malicious interference.

This is not to say that there will be no obstacles to the implementation of blockchain-based security measures as norms—it certainly will. The first one has already been mentioned: executives need to understand the value of blockchain beyond their fixed financial role. Then, developers need to create industry-specific products based on security calculations based on the second layer of features. Finally, these products need to be widely adopted to achieve data sharing between companies.

Even one of these steps may take several years to complete. But regardless of whether the timeline is extended or not, the fact is that this kind of vision for a data-supported and secure future of blockchain is possible. Privacy-preserving computing is a true solution to the data overflow problem that industry leaders have been working hard to solve for many years. We can see that all industries are undergoing transformative innovation-if only business leaders can take advantage of the impetus provided by blockchain.

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