Data privacy has become an increasingly critical issue in the digital age, with the rise of Web3 and decentralized technologies making it necessary for individuals to comprehend how their data is collected, stored, and shared. While decentralization has made it more challenging for hackers to access and steal data, it does not automatically ensure data privacy. The lack of privacy in blockchain technology has become a growing concern, which has led to the development of several projects dedicated to putting personal privacy first. This article aims to examine some of the emerging privacy-focused crypto projects that use smart contract platforms to ensure data privacy.
The Privacy Problem
Blockchains are transparent, and every transaction can be easily verified, which poses significant privacy concerns. For example, every Ethereum wallet has an address that is not associated with the real name of the owner, but if Alice sends ETH, UST, or an NFT to Bob, Bob can check all her assets and previous transactions. This loss of privacy can lead to hacking and privacy breaches.
Privacy Smart Contract Networks
Privacy smart contract networks have emerged to address these limitations, allowing for the development of smart contracts and applications that go hand in hand with data privacy. The article will focus on the top three leading privacy-focused crypto projects using smart contract platforms: Secret Network, Oasis Network, and Horizen.
Secret Network is a blockchain that prioritizes privacy, making it possible to create decentralized, permissionless, and private apps. Its privacy-preserving smart contracts are private-by-default, meaning that input, output, and state are encrypted and cannot be viewed by others unless given access. All data is encrypted and private by default, and users have viewing keys to access their sensitive data. Secret Network’s code and native coin (SCRT) are public, making it permissionless and providing complete auditability of the blockchain. Furthermore, the network uses Trusted Execution Environments (TEEs) for computing over encrypted data, enabling nodes to verify transactions within a block without accessing data that’s inside. Secret Network uses Delegated Proof-of-Stake consensus, which can process close to 10,000 transactions per second with a block time of only 6-7 seconds.
Visit their Secret Network blog for more details.
Oasis is a privacy-focused blockchain that provides a platform for secure data sharing and confidential computing. Its unique architecture called ParaTime allows developers to build privacy-focused dApps without sacrificing performance. Furthermore, it recently launched Sapphire ParaTime, which is an EVM-compatible ParaTime with several standout features. It includes a confidential state, end-to-end encryption, and confidential randomness. This allows for easy integration with EVM-based dApps while providing scalability and low cost. It also has a cross-chain bridge to enable cross-chain interoperability.
For more, visit Oasis Network Blog.
Horizen is a privacy-focused blockchain that provides an infrastructure for privacy-focused applications. The platform has a privacy-focused cryptocurrency called Zen, which is used to pay for transactions and incentivize node operators. Horizen uses zk-SNARKs to provide privacy for transactions. Furthermore, the team has implemented ideas for governance, economics, treasury, and privacy on a network level, and their passion for privacy has helped the project make a significant leap toward true privacy in the cryptocurrency world.
To learn more, visit their blog.
In conclusion, the rise of Web3 and decentralized technologies has made it necessary for individuals to comprehend how their data is collected, stored, and shared. The lack of privacy in blockchain technology has become a growing concern. This leads to the development of several privacy-focused crypto projects using smart contract platforms. Secret Network, Oasis Network, and Horizen are three of the leading privacy-focused crypto projects. Furthermore, each offers unique features and benefits that prioritize data privacy.
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