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What is Data Privacy on a Private Blockchain, and Why Do We Need It?

Waves Enterprise’s private data transfer flow is organized much like in other type 1 solutions, but with its own features, such as:

  1. OAuth service out of the box, which is used to check the access level of users inside the company and proceed only their requests. Organizations can manage whether a particular employee can have access to private data, smart contracts or just to read public transactions from the network.
  2. For private storage (which we recommend to be deployed in secured contour) participants can use any SQL database which supports JDBC driver, to allow better integration with companies’ existing architecture.
  3. Private data is stored and transferred only in encrypted form, as well as encryption keys for this private data. If the size of the data is more than 20 MB it will be transferred as packages, again only in encrypted form. The keys are unique for each encryption session to ensure greater security against keys being compromised.

Waves Enterprise: pros and cons

Ultimately, Waves Enterprise’s solution has the following key benefits:

  1. Security — minimized risk of an adversary gaining access even to public blockchain state. Private data is encrypted.
  2. As with any type 1 solution, one can transfer private data of arbitrary size and format because the blockchain stores only data hashes.
  3. Satisfies all criteria we defined for our solution.

Naturally, there are some points that should be considered to use the solution in a proper way:

  • There is a centralized step of adding participants to the network, which is necessary for the private network to ensure that only authorized parties are involved in the protocol. However, this means it is not well-suited for a public network.

Conclusion

In conclusion we would like to say that we are designing our platform to fit actual business needs. Our customers and partners are our best development drivers. And now we can see how our customers’ needs help us to expand the horizons and philosophy of blockchain technology — enabling anonymity and transparency with data control and privacy in a trustless environment.

At the time of writing, Waves Enterprise is at the forefront of harnessing the synergies of combining technologies from two different worlds — those of centralized and decentralized enterprise. Stay tuned!

References

  1. Waves Enterprise white paper
  2. Waves Enterprise documentation
  3. Corda official documentation
  4. Hyperledger official documentation
  5. Exonum official documentation
  6. Quorum documentation