User:Trueedits1009/Privacy and blockchain
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Peer-to-peer network
[edit]Blockchain technology arose from the creation of Bitcoin.[1] In 2008, Satoshi Nakamoto released a paper describing the technology behind blockchains.[1] In his paper, he explained a decentralized network that was characterized by peer-to-peer transactions involving cryptocurrencies or electronic money.[1] In typical transactions carried out today[when?], users put trust into central authorities to hold their data securely and execute transactions.[2]
In large corporations, a large amount of users' personal data is stored on single devices, posing a security risk if an authority's system is hacked, lost, or mishandled.[2] Blockchain technology aims to remove this reliance on a central authority.[1] To achieve this, blockchain functions in a way where nodes or devices in a blockchain network can confirm the validity of a transaction rather than a third party.[1] In this system, transactions between users such as sending and receiving cryptocurrency) are broadcast to every node in the network.[1] Before the transaction is recorded as a block on the blockchain, nodes must ensure a transaction is valid.[1] Nodes must check past transactions of the spender to ensure he/she did not double spend or spend more funds than they own.[1]
After nodes confirm a block is valid, consensus protocols such as proof of work and proof of stake are deployed by miners.[3] These protocols allow nodes to reach a state of agreement on the order and number of transactions.[4] Once a transaction is verified, it is published on the blockchain as a block.[5] Once a block is created it cannot be altered.[6] Through blockchain's decentralized nature and elimination of the need for a central authority, user privacy is increased.[7] Peer-to-peer networks allow users to control their data, decreasing the threat of third parties to sell, store, or manipulate personal information.[7]
After Satoshi Nakamoto spurred the creation of blockchain technology through Bitcoin, cryptocurrencies rose in popularity.[8] Cryptocurrencies are digital assets that can be used as an alternative form of payment to fiat money.[9] In current[when?] financial systems, there exists many privacy concerns and threats.[8] Centralization is an obstacle in typical data-storage systems.[8] When individuals deposit money, a third party intermediary is necessary.[8] When sending money to another user, individuals must trust that a third party will complete this task.[8] Blockchain decreases the need for this trust in a central authority. Cryptographic functions allow individuals to send money to other users.[8] Because of Bitcoin's widespread recognition and sense of anonymity, criminals have taken advantage of this by purchasing illegal items using Bitcoin.[10] Through the use of cryptocurrencies and its pseudonymous keys that signify transactions, illegal purchases are difficult to trace to an individual.[10] Due to the potential and security of blockchains, many[which?] banks are adopting business models that use this technology.[8]
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[edit]References
[edit]- ^ a b c d e f g h Crosby, Michael; et al. (2016). "Blockchain Technology: Beyond Bitcoin" (PDF). Applied Innovation Review (2): 6–19.
- ^ a b Kshetri, Nir (2017). "Blockchain's roles in strengthening cybersecurity and protecting privacy" (PDF). Telecommunications Policy. 41 (10): 1027–1038. doi:10.1016/j.telpol.2017.09.003.
- ^ Crosby, Michael; et al. (2016). "Blockchain Technology: Beyond Bitcoin" (PDF). Applied Innovation Review (2): 6–19.
- ^ Guegan, Dominique (2017). "Public Blockchain versus Private blockhain". Documents de Travail du Centre d'Économie de la Sorbonne.
- ^ Dagher, Gaby G.; et al. (2018). "Ancile: Privacy-Preserving Framework for Access Control and Interoperability of Electronic Health Records Using Blockchain Technology". Sustainable Cities and Society. 39: 283–297. doi:10.1016/j.scs.2018.02.014.
- ^ "BlockChain Technology: Beyond Bitcoin" (PDF).
- ^ a b Kshetri, Nir (2017). "Blockchain's roles in strengthening cybersecurity and protecting privacy" (PDF). Telecommunications Policy. 41 (10): 1027–1038. doi:10.1016/j.telpol.2017.09.003.
- ^ a b c d e f g Crosby, Michael; et al. (2016). "Blockchain Technology: Beyond Bitcoin" (PDF). Applied Innovation Review (2): 6–19.
- ^ "BlockChain Technology: Beyond Bitcoin" (PDF).
- ^ a b Suzuki, Bryce; Taylor, T.; Marchant, G. (2018). "Blockchain: How It Will Change Your Legal Practice". The Computer and Internet Lawyer. 35 (7): 5–9.