Bitcoin and transparency go hand in hand. While we can’t say the same about centralized exchanges and trading platforms, the Bitcoin protocol is completely transparent and offers a certain degree of anonymity as well (pseudonymity). But as technology progresses, we now have entirely different use cases of blockchain technology on our hands. Bitcoin’s underlying blockchain technology has grown beyond being a public ledger keeping a record of all bitcoin transactions.
The application of blockchain technology is now being widely explored by banking and financial institutions across the world. There are many smart contracts being built using Bitcoin blockchain as well as Ethereum. the increasing applications and use cases for bitcoin blockchain also calls for the introduction of certain features suitable for particular industries.
When it comes to the banking sector, they do not prefer public blockchain where anyone can go through their ledger on the blockchain. In such cases, a private blockchain can not only make things easier for the industry but also drive adoption.
Ethereum may have a solution for that. It includes smart contracts and homomorphic encryption. What is Homomorphic Encryption?
It is a method of performing calculations on encrypted data without decrypting them first. This offers a much-needed leeway to make use of the blockchain technology on an as-is basis. By using homomorphic encryption techniques to store data over the blockchain, a perfect balance can be created. There won’t be any significant changes in the blockchain properties. Meaning, it will still be a public blockchain. However, the data on the blockchain will be encrypted, taking care of the privacy concerns associated with public blockchains.
The use of homomorphic encryption technique will not only offer privacy protection, it will also allow ready access to encrypted data over public blockchain for auditing and other purposes. In order words, the use of homomorphic […]
