How Blockchain is Pushing Privacy and how Dusk Network is one of the major players
Of the many hot button issues on the internet these days, privacy is certainly at the top of the line. From endless ads for VPNs across social media to the air of distrust that many of us have developed around big tech companies, it is clear that privacy is a valuable resource online.
It also seems to be a very elusive resource. Yes, we can use incognito mode on our devices and pay for VPNs but all these have a similar flaw; they are based on centralized institutions. Your internet service provider might not be able to track you using a VPN but what about the VPN provider itself? What about your device provider?
As long as our internet use remains in the hands of centralized institutions, it seems that privacy will remain elusive. This is why, in recent times, there has been a shift towards decentralized platforms to secure privacy online. One of these options, the Dusk Network, also launched its new testnet that goes to show just how much privacy we can enjoy with decentralized platforms.
A Decentralized World
One thing to note is that blockchain has already shown its potential in preserving privacy. When cryptocurrencies are sent across a blockchain network, the identity of the sender and receiver are kept private. There are crypto whale accounts that move millions of dollars worth of crypto and their owners still retain their privacy.
In fact, this idea of privacy when it comes to financial transactions is the basis of the Dusk Network’s new zero-knowledge proof system called PlonKup. The Dusk Network blockchain, which works mainly in the financial sector, has created a way for financial institutions to verify the information of users without them having to give up the information.
How this works is that specific information is confirmed on a blockchain and other institutions that use that blockchain can confirm it while preserving privacy. Say a person wants to get a loan and needs to confirm their creditworthiness.
A zero-knowledge proof system would confirm their creditworthiness to the loan provider without giving up specific details of their past transactions. This is one of the many applications of the proof system and it is becoming more widely used in the financial sector.
Dusk Network’s new iteration of it is designed to make the process of using zero-knowledge proof easier for financial institutions. Even prior to the testnet being released, the Dusk Network had seen an immense response from its userbase and institutions alike, showing how great the demand for privacy-centric networks had grown.
The watchword for this release was compliance, with the Dusk network focusing on helping businesses remain compliant with know-your-customer requirements while still preserving privacy.
As Jelle Pol, Founder & Business Director at Dusk Network, explained, “They need the tools to satisfy compliance criteria, whilst keeping sensitive data, such as their clients’ balances, ownership registries, and asset movements between venues, confidential. I am beyond excited to launch DayBreak knowing that we are pushing technology that addresses the needs of the real world.”
The Future of Financial Privacy
Blockchain has proven to us in the last decade that the global economy can be sustained while still giving consumers their privacy. Now, the industry is building upon this work and with zero-knowledge proof, there is no stopping this movement.
As financial institutions adopt blockchain-based measures on a large scale, privacy could very well become the standard and not a novelty for consumers. All this, of course, will be thanks to the power of blockchain technology.
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