{"id":295833,"date":"2021-07-10T17:37:00","date_gmt":"2021-07-10T14:37:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/privacy-preserving-computation-on-blockchains-could-prevent-breaches\/"},"modified":"2021-07-10T17:37:00","modified_gmt":"2021-07-10T14:37:00","slug":"privacy-preserving-computation-on-blockchains-could-prevent-breaches","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/privacy-preserving-computation-on-blockchains-could-prevent-breaches\/","title":{"rendered":"# Privacy-preserving computation on blockchains could prevent breaches"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a2910ac996f6\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a2910ac996f6\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/privacy-preserving-computation-on-blockchains-could-prevent-breaches\/#Blockchain_is_the_savior\" >Blockchain is the savior<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/privacy-preserving-computation-on-blockchains-could-prevent-breaches\/#Healthcare_as_an_example\" >Healthcare as an example<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/privacy-preserving-computation-on-blockchains-could-prevent-breaches\/#Takeaways\" >Takeaways<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong># Privacy-preserving computation on blockchains could prevent breaches <\/strong>&#8221;<br \/>\n<img decoding=\"async\" src=\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjEtMDcvZDVlODk5NTQtNmQ1NC00NTkwLTgwYjktNjUzNWI3MmFhNzlhLmpwZw==.jpg\" \/><\/p>\n<div class=\"post-content\" data-v-128018ef>In the 19th century, the barons of American industries rose to prominence by leveraging their hold on tangible resources like oil and steel. Today, corporate titans seek to attain even greater heights of wealth by gathering consumer data. But now, like then, the benefits of accumulating such resources come paired with a significant business risk: spillage.<\/p>\n<p>Like oil spills, data leaks \u2014 regardless of whether they occur accidentally or as a result of hacker interference \u2014 can cause companies and consumers significant financial, legal and political harm. Consider the fallout at <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">Facebook<\/a> earlier this year. In April, the phone numbers, full names, email addresses and locations of 533 million users were shared to a hacking forum, prompting an outcry from consumers and governments alike.<\/p>\n<p><strong><em>Related: <\/em><\/strong><strong><em>Crypto at risk after Facebook leak: Here\u2019s how hackers can exploit data<\/em><\/strong><\/p>\n<p>Facebook is far from alone in its security woes. In 2020 alone, there were 1,001 <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.statista.com\/statistics\/273550\/data-breaches-recorded-in-the-united-states-by-number-of-breaches-and-records-exposed\/\">reported<\/a> data breaches and more than 155 million people were adversely affected by data exposures. These leaks are an expensive and time-consuming problem for businesses. One 2020 report from IBM <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.ibm.com\/security\/digital-assets\/cost-data-breach-report\/#\/\">found<\/a> that the average cost of a breach topped $8.64 million and typically took 280 days to resolve, though those metrics vary by industry.<\/p>\n<p>Despite the expense and PR woes, many businesses would argue that the benefits data provides are worth the risk of multi-million dollar exposure. Research has demonstrated that big data <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/bi-survey.com\/big-data-benefits\">empowers<\/a> businesses to make better strategic decisions, reduce costs, improve operational processes and gain a better understanding of their customers \u2014 all of which facilitate higher profits.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Blockchain_is_the_savior\"><\/span>Blockchain is the savior <span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Avoiding security risks by not using data simply isn\u2019t an option. So, the question is: How can companies make the most of the competitive advantage data provides without putting themselves at undue risk of financial, legal and PR disaster?<\/p>\n<p>The answer lies with privacy-preserving computation on the blockchain.<\/p>\n<p>This solution might seem counterintuitive at first. After all, blockchain transactions reach consensus in public and are designed to be transparent and publicly accessible \u2014 two characteristics that run counter to companies\u2019 data security goals. It\u2019s the blockchain paradox: Users can either share data to achieve new insights that benefit society as a whole or isolate data into protected silos that safeguard individual privacy.<\/p>\n<p><strong><em>Related: <\/em><\/strong><strong><em>The data economy is a dystopian nightmare<\/em><\/strong><\/p>\n<p>In recent years, the emergence of privacy-preserving computation has presented a third option. With verifiable computation, findings can be audited publicly to prove correctness outside of the main blockchain network, thereby eliminating the exposure risks posed by transparency. Moreover, by integrating privacy-preserving computation as a layer-two solution and outsourcing the work to external nodes, this security measure can be <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>lied without adding an undue burden or cost to a company\u2019s primary blockchain network.<\/p>\n<p>In practice, integrating this security measure means that companies can have their cake and eat it too. By incorporating blockchain into data management strategy, businesses can drastically lower the risk of breach and its associated fallout.<\/p>\n<p>While there is limited research to uphold the value of layer-two, privacy-preserving computation specifically, preliminary literature on blockchain-based security indicates the <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/technology\/\" data-internallinksmanager029f6b8e52c=\"4\" title=\"Technology\" target=\"_blank\" rel=\"noopener\">technology<\/a>\u2019s potential as a privacy measure. In 2020, one review published in Sustainability found: <\/p>\n<blockquote><p>\u201cThe integration of [blockchain technology] in the industry can ensure data confidentiality and integrity, and should be enforced to preserve data availability and privacy.\u201d<\/p><\/blockquote>\n<p>However, companies that adopt privacy-preserving computation and other blockchain-based security measures don\u2019t just benefit from improved security, they also have a transformative opportunity to bolster interoperability within industries that have historically been hamstrung by the threat of data insecurity.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Healthcare_as_an_example\"><\/span>Healthcare as an example<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>In the sector, data-sharing between providers, health networks and third-party researchers is crucial. However, patient privacy regulations have made information transmission difficult. Notably, many healthcare providers were <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.vox.com\/health-care\/2017\/10\/30\/16228054\/american-medical-system-fax-machines-why\" data-amp=\"https:\/\/www-vox-com.cdn.ampproject.org\/c\/s\/www.vox.com\/platform\/amp\/health-care\/2017\/10\/30\/16228054\/american-medical-system-fax-machines-why\">stuck<\/a> using outdated fax machines for years because their advanced electronic systems weren\u2019t interoperable enough to securely transmit patient information.<\/p>\n<p><strong><em>Related: <\/em><\/strong><strong><em>Blockchain will revolutionize healthcare \u2014 Just not any time soon<\/em><\/strong><\/p>\n<p>These silos had a chilling effect on healthcare innovation. As a team of German scientists <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/pubmed.ncbi.nlm.nih.gov\/31453374\/\">noted<\/a> in a 2019 paper in Nature Partner Journals of Digital Medicine:<\/p>\n<blockquote><p>\u201cHidden in isolated databases, incompatible systems and proprietary software, [healthcare data is] difficult to exchange, analyze and interpret. This slows down medical progress, as technologies that rely on this data \u2014 artificial intelligence, big data or mobile applications \u2014 cannot be used to their full potential.\u201d<\/p><\/blockquote>\n<p>The potential the team refers to is significant. In recent years, AI researchers have used patient data to develop remarkably accurate algorithms to support doctors during the diagnostic process. Last year, for example, researchers <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/stm.sciencemag.org\/content\/12\/548\/eabc8946\">trained<\/a> a neural network to identify 26 of the most common skin conditions by connecting it with over 16,000 teledermatology cases. That algorithm was ultimately found to be as accurate as trained dermatologists. As one reviewer <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/stm.sciencemag.org\/content\/12\/548\/eabc8946\">recapped<\/a> the project: <\/p>\n<blockquote><p>\u201cAlthough this tool is not yet approved for clinical use, deep-learning-based diagnostics and clinical decision support tools are gaining acceptance in many medical specialties and are poised to change how we experience medicine.\u201d<\/p><\/blockquote>\n<p>Poised, in theory, but in practice, data (in)security stands as a roadblock to progress. Building the teledermatology tool required researchers to tap into a massive data trove. However, sharing even small sets of sensitive patient data is a privacy nightmare.<\/p>\n<p>Consider the backlash that occurred last year when Google partnered with Ascension, a major hospital chain, to <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.wsj.com\/articles\/google-s-secret-project-nightingale-gathers-personal-health-data-on-millions-of-americans-11573496790\" data-amp=\"https:\/\/www-wsj-com.cdn.ampproject.org\/c\/s\/www.wsj.com\/amp\/articles\/google-s-secret-project-nightingale-gathers-personal-health-data-on-millions-of-americans-11573496790\">launch<\/a> \u201cProject Nightingale\u201d \u2014 a tool designed to search for patient information. The <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">news<\/a> triggered an immediate and overwhelming backlash as critics lambasted the pair for sharing confidential patient records. Google and Ascension pushed back on the criticism, arguing that their data-sharing adhered to federal data privacy rules. But, as one Stanford University professor <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.wsj.com\/articles\/google-strikes-deal-with-hospital-chain-to-develop-healthcare-algorithms-11622030401\" data-amp=\"https:\/\/www-wsj-com.cdn.ampproject.org\/c\/s\/www.wsj.com\/amp\/articles\/google-strikes-deal-with-hospital-chain-to-develop-healthcare-algorithms-11622030401\">shared<\/a> in an interview with the Wall Street Journal:<\/p>\n<blockquote><p>\u201cSome consider the federal law outdated, saying the law\u2019s protections haven\u2019t kept pace with the technology sector\u2019s growing demand for patient data.\u201d<\/p><\/blockquote>\n<p>The point made here is a nuanced one. The problem isn\u2019t that companies aren\u2019t adhering to privacy regulations, it\u2019s that the public doesn\u2019t have faith in those security measures. If health companies genuinely want to maximize innovation by boldly leveraging data, they need to stop hedging to the letter of the law and start addressing consumer fears head-on.<\/p>\n<p>Imagine if healthcare providers had access to data security measures that utilized layer-two verifiable computation to securely share patient data without putting the consumer \u2014 or their organization, for that matter \u2014 at risk. The security and assurance the technology provided would completely change the proverbial <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/game\/\" data-internallinksmanager029f6b8e52c=\"7\" title=\"Game\" target=\"_blank\" rel=\"noopener\">game<\/a>. It would empower innovation, forestall malicious threats and lower the risk of data spillage.<\/p>\n<p><strong><em>Related: <\/em><\/strong><strong><em>The role of decentralized networks in a data-abundant, hyperconnected world<\/em><\/strong><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Takeaways\"><\/span>Takeaways<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The mistake made too often by corporate leaders is to assume that the benefits blockchain provides are limited to finance. However, the security blockchain provides could prompt a mass-scale perspective shift on what\u2019s possible in data-sharing. Privacy-preserving computation allows for the removal of fear. It empowers companies to imagine what they could achieve if they could leverage their data to the fullest extent without fear of malignant interference.<\/p>\n<p>This isn\u2019t to say that there wouldn\u2019t be barriers to implementing blockchain-based security measures as a norm \u2014 there certainly would be. The first has already been mentioned: Executives need to understand the value blockchain holds outside of its stereotyped role in finance. Then, developers would need to create industry-specific products based on the secure computation of layer-two features. Lastly, these products would need to be widely adopted to allow for data-sharing across companies.<\/p>\n<p>Even one of these steps could take years to complete. But extended timeline or no, the fact is that this vision for a data-enabled, blockchain-secured future is a possibility. Privacy-preserving computation is a real solution to the data-spillage problems industry leaders have been struggling to solve for years. We could see transformative innovation occur across all industries \u2014 if only corporate leaders take advantage of the boost blockchain provides.<\/p>\n<p class=\"post-content__disclaimer\"><em>This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.<\/em><\/p>\n<p class=\"post-content__disclaimer\"><em>The views, thoughts and opinions expressed here are the author\u2019s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.<\/em><\/p>\n<div>\n<div style=\"background: rgb(239, 239, 239); border: 1px solid rgb(204, 204, 204); padding: 10px;\"><strong>Felix Xu<\/strong> is a co-founder and CEO of ARPA. Felix graduated with Finance and Information Systems degrees from New York University. For the past six years, Felix has been working on venture capital investment in fintech, big data and AI startups. Most recently, Felix led blockchain sector research and early-stage investment at Fosun Group, one of the largest conglomerates in China.<\/div>\n<\/div>\n<p><template data-name=\"subscription_form\" data-type=\"consulting_newsletter\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more News articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/privacy-preserving-computation-on-blockchains-could-prevent-breaches\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# Privacy-preserving computation on blockchains could prevent breaches &#8221; In the 19th century, the barons of American industries rose to prominence by leveraging their hold on tangible resources like oil and steel. Today, corporate titans seek to attain even greater heights of wealth by gathering consumer data. But now, like then, the benefits of accumulating&#8230;<\/p>\n","protected":false},"author":1,"featured_media":295834,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjEtMDcvZDVlODk5NTQtNmQ1NC00NTkwLTgwYjktNjUzNWI3MmFhNzlhLmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[15047,74894,72366,5047,5048,4965],"class_list":["post-295833","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-privacy","tag-blockchain","tag-data","tag-health","tag-medicine","tag-technology"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/295833","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=295833"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/295833\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/295834"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=295833"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=295833"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=295833"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}