Enhancing Data Privacy and Protection by Blockchain Technology

Discover the power of blockchain technology in securing data privacy and protection.

Blockchain Technology

Explore the potential of blockchain technology in safeguarding data privacy and protection. Depends upon the users, the data maybe shared in two ways, one is Public and another one is Private. The biggest thing is that data are stored in a ledger that records everything in a secured manner with the consensus algorithms and guarantees that no one could tamper the data. The database that stores all the records of the transactions among the nodes in the network are named as Blockchain.

The five layers are data layer, transaction layer, blockchain layer, contract layer, and the application layer.

blockchain layer

  • Data layer: It holds the functionalities of the hash function, Merkle tree, time stamp, chain structure, and the asymmetric encryption.
  • Transaction layer: In the transaction layer, data packets are transferred in the peer-to-peer network and it also follows the mechanisms of verification, distribution, and delivery of data.
  • Blockchain layer: All the data are come under a mechanism of consensus and follows the management strategy, user their account and finally the transaction and business.
  • Contract layer: The smart contracts are deployed in the contract layer by using the script codes and the algorithms.
  • Application layer: Finally, the application layer plays a major role for front-end and back-end process for overall layers combined to perform by using the smart contract in areas like finance, supply chain, trading, etc.

The User may use any type of applications, the privacy should be maintained for the users and frequent analysis of user’s feedback should be taken periodically.

Encryption of Data

The data should be encrypted for the safe side of the senders as well as the receivers like we use in Whatsapp. But it is not highly secured, this is because the other users can easily download the status or can even take screenshots of other users. In Blockchain, the data are secured by Mathematical Crypto puzzles of SHA-256 and it is not easily decrypted any of the intruders.

The blockchain works in the peer to peer network with multiple nodes and no need of a central server.

  • Confidentiality
  • Integrity
  • Non-Repudiation
  • Authentication

Confidentiality: In peer to peer network, if suppose we have node A and node B. Node A wants to send a simple message to node B in the peer to peer public network. It is an open source network and it can be accessed by anyone. Our data will be confidentially shared across the network. It will be securely achieved in the blockchain.

Integrity: Node A sends a message to node B. At this point no one could be able to view the data or not allowed to modify the data. If anyone modifies the data in the public network, that will be notified to all the nodes in the network. The data which is received by node B is different from what A is sending, we won’t have such type of issues in integrity.

Non-repudiation: It means that no one says that “I am not done that” in the public p2p network. example: node A sends a message to node B, this should be proved that node A sent a message to node B and also it would be received to node B.

Authentication: Node A sends a simple message to node B, that how secured the message sent to node B. Problem here is that we don’t want anyone else to verify or to authenticate a message in the open-source network. This is what we have an issue in authentication. To solve this problem, we have a concept of blockchain technology.


Data can be secured and protected by using Blockchain Technology and sharing of data may depends upon the user’s privacy concern. The main role for the users is, to handle the data by holding the privacy terms, and to whom we are sharing, and who can access it, and where we are sharing the data. Even the cloud storing of data ends in risk factor. So try to secure the data by carefully handling it.