Blockchain Storage Offers Security, but Leaves Data Transparent

Published on by Cointele | Published on

The advent of blockchain technology seems to have heralded a new era in data security.

"RTB is the biggest data breach in the world. Personal data are being broadcasted to thousands of companies."

Ryan's words resounded with the growing number of data breaches, highlighting the fact that most modern business models are based on the collection and sales of users' personal data, as browsers like Chrome and social networks like Facebook sell the data to those who pay for it.

Data security is often disregarded for the sake of convenience, as companies resort to third-party resources like Dropbox and Google Docs, the security of which has been regularly questioned.

Data privacy does not agree with blockchainSpeaking with Cointelegraph about blockchain technology and data security, Vijay Rathour, a partner at the digital forensics and investigations group of Grant Thornton, compared the technology to bank vaults made of glass: "They're very secure. They're one-way vaults - i.e., you can put precious things in them but not take it out. The contents can be seen by the world."

Blockchain has many inherent advantages that make it a perfect match when it comes to privacy, and it offers useful data protection features that allow it to comply with the General Data Protection Regulation.

"Indeed, the key feature of a blockchain is protecting the integrity of data by rendering it immutable. However, exactly that feature can become a problem if the data is not required, wanted or correct anymore. It is virtually impossible to remove it. This creates a new sort of privacy problem."

Puutio also referred to a survey published in January 2019 that found that only a small portion of blockchain platforms are able to achieve high levels of data security.

Though a critical mass of users demanding decentralized data storage would make blockchain technology the de facto storage medium, the immutability factor does not allow it to comply with the GDPR requirements.

Blockchain technology still has a way to go before becoming the all-in-one data storage solution.

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