Web3, DeFi and privacy

Crypto enthusiasts are very proud of the potential development of DeFi and Web3 blockchain-based data distribution. In fact, the general public has a different opinion of the two cases, including recent studies suggesting that the anonymous changes may include self-report data.A new wave of blockchain platforms or processes is moving towards privacy..

What are Web3 and DeFi?

Maybe in time most of the people who love blockchain technology will disappear, but the hopes for the tech industry will rise.Many tech experts consider open, transparent, and tamper-proof blockchain technology to be the foundation of Web3 and DeFi..

Of course, many voices in the industry are asking if the status of Web3 and DeFi application can be achieved. Earlier this month,The Bank for International Settlements believes DeFi distribution will remain "a form of management"., and DeFi says it now has "multiple usable apps."

In another larger blog, tech developer Stephen Diehl viewed Web3 as "an unreliable company trying to restructure public institutions with crypto-based assets." Misunderstandings that affect the hegemony of technology companies. "

Fortunately, there is a lot of bad news regarding Web3 and DeFi, but that hasn't stopped users from investing in the future.

According to a World Economic Forum report, from 2019 to 2020, the value of digital assets recorded in DeFi smart contracts increased from $ 670 million to $ 13 billion.1800 %. And just look at the data for this quarter, DeFi's total token value is152 billion dollars. And according to the data, so far$ 27 billionCryptocurrency is used to buy NFTs.

From a data perspective, market demand is still high.

Conensys, which provides the Metamask wallet, received $ 200 million ($ 3.2 billion) in funding in November, including HSBC, and $ 65 million from JPMorgan Chase, Mastercard and UBS. In October of this year, engineer Web3 Alchemy also reached a net worth of $ 250 million from $ 3.5 billion.

However, if Web3 and DeFi are to be approved and administered publicly, two major issues need to be addressed.

First of all,What should be mentioned is the activation of the PoW mechanism.. Since Pow's approval mechanism could negatively impact the environment, this is incompatible with Web3's growth prospects. Ethereum is one of the public channels which supports many Web3 applications, and already plans to switch to PoS mechanism next year, and can realize the reduction.

Second, we will talk about the sequelPrivacy and security concerns.

How do Web3 and DeFi protect your privacy?

Considering how Web3 and DeFi keep private users from falling into two main categories. Supporters believe Web3 can improve user privacy by allowing individuals to manage member data from private archives, but the distribution chain is argued to determine that every operation in the chain can be identified by participants. chain. It appears to be a violation of privacy.

Tor Bair, Co-Founder of Secrecy Network, said earlier this year: “Web3 seems to mean everyone has to step aside completely. NFTs and blockchains are open and transparent.How to ensure the security of heritage and data are questions.."

In theory, users of public chains wouldn't identify themselves, but scientists have found that the technology can be used to connect blockchain-based businesses with locksmiths.

A recent article published by researchers at private browser Brave and Imperial College London notes:Many DeFi applications include third-party services on the network, and third-party browsers can access the addresses of Ethereum users..

"We find that many DeFi sites rely on third parties and sometimes end user Ethereum sites on those third parties (most APIs and test sites). You will also have access to 56% of the Ethereum Location Tracker sites surveyed. by 78 DeFi sites.

The researchers warn that in theory, third-party services can connect Ethereum sites to other PIIs they own for users. “If an Ethereum user address is leaked to Google, it could have a huge impact. If Google can have a PII on you, it can be linked to your Ethereum address, which can be linked to any information about how Google works. blockchain. "

“Ethereum addresses are personal, just like credit cards and bank accounts,” he added.DeFi sites should take the same measures to protect this information."

Web3 and DeFi confidentiality agreement

To protect your personal data between DeFi and Web3,Blockchain exchange data must be separated from PII..

Saeed Hasan, Marketing Director of the Blockchain Council, made it clear that all blockchain platforms and procedures must prevent user data transfers from being contracted, and many of them are good things. During operations, we can provide full support to the entire ecosystem. "

As a working guide, let's take the Oasis Network as an example,Oasis is the first company to introduce a capable, privacy-friendly blockchain.. The Oasis protocol opens up new DeFi applications, making it easier to use by supporting “data tokenization” which allows users to control how their data is used.

The Findora blockchain process is also a good example, combining “private enterprise” with the ability to selectively publish data for administrators and analysts. This is different from so called "private coins" like Monero coins. Last year Findora raised billions of dollars and announced $ 100 million in funding to support developers.

The Panther protocol, meanwhile, is still in development and can run on various blockchain platforms, including Ethereum. Technology allows you to protect the anonymity of your business -Evidence that is not discussed (a type of zero-knowledge evidence) or combined with zSNARK—— See the "available but not found" file. Last month, Panther Protocol raised $ 22 million by selling its ZKP token in 1.5 hours.

In addition to Web3 and DeFi, blockchain technology that supports self-defense is still needed, and we look forward to upgrading existing technologies.

Currently, all projects integrated into the use of technology have sufficient capacity to develop processes and procedures, but these capacities cannot fully satisfy the Web3 community. The results will still be visible.