Private Blockchain Networks: A Solution for Data Privacy

Abstract

The widespread adoption of blockchain technology has had a big impact on how people transact in the digital world. Individuals can transact in an anonymous but transparent manner. Their identities remain hidden but the records of their transactions are publicly available. This has had its benefits in certain application areas but might not be suited for transactions where it is important to know who you are dealing with and in circumstances where the data in the blockchain might be confidential. Private blockchain networks are better suited for such transactions as only authorized users can transact on the network. Sensitive data can also be stored on the blockchain as it is possible to restrict the users that can see the details of the transactions. This paper describes how to create a private blockchain network and how other users can join the network. It also details the benefits of using a private blockchain network with regards to data privacy as opposed to a public network.