The Blockchain Revolution in Encrypted Computing: A New Era for Privacy
What is the critical clash within blockchain technology: complete transparency or absolute privacy? And how do we manage to achieve a balance between the two?
One of the essential principles of blockchain has long been the commitment to user privacy despite the chains being publicly verifiable and relatively open. This commitment is increasingly crucial as personal privacy rights appear to be diminishing, particularly reflected in the European Union’s recent initiative for a chat control law that would permit large-scale scanning of private communications and encrypted messages.
The latest episode of The Clear Crypto Podcast examines the significance of privacy-focused protocols, featuring insights from Yannik Schrade, co-founder and CEO of Arcium.
Schrade elaborates on the privacy revolution encompassing encrypted computing and zero-knowledge proofs that enable blockchains to manage sensitive information such as medical records without leaks or the need for trusted middlemen.
Privacy 2.0
According to Schrade, the sector is gradually transitioning to what he describes as “Privacy 2.0,” where blockchains operate based on an encrypted shared state.
“That means everyone can encrypt their data, whether it’s transaction data or medical records. We can collectively process this encrypted data, establish confidential trading platforms, and create private lending markets to ensure anonymity in decentralised finance applications,” stated Schrade.
He emphasized that this development could revolutionize not just the cryptocurrency realm but also benefit society in general.
“Data can now flow through encrypted channels globally. This is the future we are heading towards, marking the frontier of privacy and computing.”
Schrade also noted that the traditional Web2 environment has been hampered by the presence of single trusted entities. Cryptography and multiparty computation now enable individuals and AI to analyze and derive insights from data without having to compromise or directly access the data underlying it.
Practical Unlocks in Healthcare
Schrade provided a practical scenario illustrating how encrypted computing could facilitate the sharing of sensitive healthcare information while protecting patient privacy.
He cited hospital medical records and data gathered by personal health tracking devices, like Whoop bands, which monitor vital signs and other sensitive biometric data.
“Currently, such data is stored in isolated systems. It cannot and should not be shared. It consists of sensitive information, including government and financial data,” he explained.
Encrypted computing can tap into this data and extract shared insights without breaching it.
“In conventional centralized computing frameworks, you always end up unveiling the data at some point. Yet, we are progressing toward a future where that is no longer necessary.”
To listen to the full dialogue on The Clear Crypto Podcast, visit Cointelegraph’s podcast page, Apple Podcasts, or Spotify. Also, check out Cointelegraph’s extensive array of other shows!
