Data privacy has been a hot topic for quite some time now and particularly after the popularity of cryptocurrencies, everyone seems privacy-conscious and they should be. While most of the traditional FinTech use cases lack the capability to offer ‘reliable’ data privacy, cryptocurrencies are quite different due to their decentralized architecture, provided by the blockchain technology.
So basically, it’s the underlying technology that offers sheer privacy and since it’s booming drastically, experts believe that the blockchain tech is likely to be about $20B worth of industry by 2024.
What’s So Unique About Cryptocurrencies in Terms of Data Privacy?
There are two aspects of this question – firstly, cryptos do not fall under a centralized authority and it implies that respective data does not exist on a central server that a hacker could get hold of and steal the information.
Secondly, the entire data on the underlying Decentralized Ledger Technology is encrypted. It is also worth noticing that in most cases, revolving around fiat currencies (e.g. banks), users must submit their data to a representative which then moves around the organization and different people can see it. For instance, if you go to the bank and ask for a loan, tens of humans might look at your data and scrutinize your past before giving you the loan.
Since such traditional practices are highly against the modern approach of data privacy, we are only left with cryptocurrencies and different use cases built around this technology.
So, let’s explore a couple of businesses taking your privacy very seriously and understand how they offer practical use cases.
This cryptocurrency exchange has a massive trading volume of thousands of BTCs. The most significant perk that makes it unique is the underlying P2P architecture. It implies that trades on Bitzlato are strictly between two parties and the platform does not act as an intermediary for holding your coins – which is quite a decent approach for giving a sense of security to the traders.
Even though they have robust security measures, Bitzlato does not have a mandatory KYC procedure, which many market-leading platforms demand. Thus, positioning it as one of the attractive P2P exchanges, particularly in СIS. Apart from that, they also feature a referral program that you can join without exposing your private data and earn rewards for the deals made by your referrals on the platform.
It happens to be a Georgian startup, particularly aiming for wallets that can facilitate efficient and secure trade of cryptocurrencies and tokens. While Javvy is fully decentralized, they also take enhanced measures to secure accounts by providing biometric logins and AI algorithms to detect any fraudulent activity on the platform.
Thus, ensuring the security of data with the help of blockchain and adding another layer of AI and biometric verification to guarantee that only authorized people can access the mainstream platform.
Oftentimes, when startups provide sheer privacy to the users, they focus so much on this feature that they end up with a pretty low-key efficiency. This is where Oasis Labs comes into play and offers the users to create smart contracts revolving around the strict concepts of data privacy and overall system efficiency.
As explained above, they allow you to be the sole owner of your data, while ensuring that the way your smart contract receives information from the users is fully compliant with the latest regulations. Moreover, it also enables end-users of the smart contracts to collaborate with different people on the network without giving up control of their data.
It is worth noticing that data security has turned out to be a great concern in recent years. Particularly, after the crypto hype towards the end of 2017, when people realized the potential of this technology in FinTech (where data theft is quite common), we have seen exponential growth in the number of crypto-related use cases.
Since there are plenty of options in the market now, it is a very good time that you start using cryptocurrencies for your FinTech activities in order to keep your private data secure and avail several other perks as well.