There has been much excitement about blockchain’s potential to replace less secure forms of digital identification and digital collaboration like passwords and emails. In theory, blockchains are able to store personal information in a safe and secure manner due to their immutable ledger format. However, this format also plays a part in limiting privacy for users because it means that information that exists on the ledger can never be removed. This may pose a risk for people who have originally agreed to provide certain information but then wish to remove it from public records, something that becomes especially poignant when you consider that international regulations such as Europe’s GDPR (General Data Protection Regulation) require “the right to erasure” of personal data.
Cryptocurrency exchange security is being hotly debated as digital assets draw more attention from consumers, investors, regulators and fraudsters. The values of cryptocurrencies are famously volatile and users can trade certain tokens anonymously or while using pseudonyms. These combined factors can attract both privacy-focused investors eager to gamble on favorable cryptocurrency market trends and also lure fraudsters who hope to hide their identities while conducting financial crimes. The current cryptocurrency frenzy is further creating a lucrative environment in which cybercriminals can carry out their schemes.
“We haven’t had an opportunity like this in the past 500 years.”
That’s Amir Taaki speaking on a closing panel at the Web3 Summit in Berlin Wednesday, and his statement was greeted with breathless applause by the audience. An early bitcoin developer, Taaki addressed a crowd of more than a thousand coders that had gathered to discuss “Web 3.0” – or the restructuring of internet infrastructures with an emphasis on decentralization.