There are thousands of new malware pieces created daily. Users’ data is on the hackers’ radars, but it’s not only hackers. Hundreds of companies are looking to harvest users’ data, including their online behavior, to sell it to interested agencies.
Is there something out there to stop the privacy protection erosion caused by technology? Well, many entities, software, and institutions fight for this purpose. Additionally, cryptocurrencies are part of the battle, allowing users to pay for services without revealing their identities.
Let’s see how cryptocurrencies contribute to preserving users’ privacy online.
Cryptocurrencies as a cybersecurity shield
The underlying technology cryptocurrencies are built upon is called the blockchain. The tech ensures that every transaction is safe and secure.
At the same time, blockchain makes it virtually impossible for hackers to manipulate the data and get financial gains. In addition, many blockchain platforms have started using onion and garlic routing, including Dandelion++ for Bitcoin, Lightning Network, and Monero.
Cryptocurrencies bring us a technology initially used to keep government surveillance at bay. Onion routing can further improve the users’ privacy and anonymity online. It will help render them more resilient to cyberattacks, thus improving security.
Blockchain as a new security standard
While we are talking about blockchain technology, you should know that even the Pentagon recognized its potential in terms of cybersecurity. Cryptocurrencies brought blockchain into the spotlight. They helped millions worldwide understand its value and benefit from its impenetrable defenses. Blockchain is so much more than the ledger storing sensitive data.
Every transaction through the blockchain is secure because cryptography secures it. With unique and public keys, not one transaction can go through before first being verified. It’s also distributed and decentralized.
That’s why it’s so hard to corrupt it, even if hackers manage to corrupt one point in the system. Finally, the consensus ensures that a transaction is legitimate.
Brand new use cases
We’ve already established that cryptocurrencies made everyone realize how powerful blockchain is. Shortly after cryptocurrencies became immensely popular, companies worldwide started exploring potential use cases for blockchain.
It’s particularly attractive to companies where legislation is lacking. Instead of leaving their data and infrastructure to chance, companies can use blockchain to improve the security of their operations.
Blockchain is no longer exclusively associated with cryptocurrencies. Organizations across verticals use it to render sensitive data safe. For instance, hospitals use it to protect their patients’ medical records, and real estate companies use it to speed up business transactions. It’s even found use in IoT, improving security and facilitating administration and operations.
Inspires data privacy public debates
Cryptocurrencies didn’t become attractive overnight. It took some time for people to understand what they indeed are and how the transactions occur. Cryptocurrencies forever changed users’ views on privacy. Before blockchain, it was borderline impossible to make completely private and anonymous payments (besides cash) as consumers had to disclose their payment information.
Well, thanks to the blockchain, users enjoy end-to-end privacy and anonymity. It inspired people to question the privacy practices of other online services and technologies in general. Of course, Bitcoin does not make payments completely anonymous. However, tracing them becomes much more difficult.
This time they are meaningful and impactful because cryptocurrencies helped people understand privacy and its benefits better.
Motivates users to take ownership of their data
Before cryptocurrencies, only a handful of people knew that their data was up for grabs online. We are not only talking about the data regarding online behavior, but users’ payment information, likes, images, videos, and private messages too. Cryptocurrencies played a pivotal role in educating people across the world.
If cryptocurrencies and exchanges can offer such an advanced level of security, why wouldn’t other online service providers step up their security game too?
Suddenly, internet users started looking for providers with stellar security practices and using solutions that offer end-to-end encryption, such as Virtual Private Networks. The latter tools are excellent at making users more anonymous and private online.
Additionally, many services allow you to purchase subscriptions with cryptocurrencies. You should check whether such options are possible before starting a VPN download.
Users also started reading privacy policies, ensuring that their data remains safe and doesn’t end up being used by unknown companies.
The rapid development of privacy regulations
Finally, when it comes to fundamental human rights, cryptocurrencies have helped make the right to privacy a basic right in the online world. The cryptocurrency revolution had many governments speed up the development of privacy regulations. As it turns out, everyone benefits from these regulations and not only cryptocurrency users.
The two most noteworthy regulations are the General Data Protection Regulation (GDPR) and the California Privacy Rights Act (CPRA), which legislated privacy laws. These laws don’t only help ensure data privacy but also provide people with certain rights, such as the right to know what personal data is being collected.
Cryptocurrencies continue to play a vital role in preserving users’ privacy online. It helped people and organizations understand the value of blockchain technology. Furthermore, it inspired public debates regarding data privacy, sped up the development of privacy regulations, and motivated users to take ownership of their data.