The privacy law implications of Blockchain technology

Abstract

As we have seen, one of the major advantages of distributed ledger technology that is touted by promoters is the enhanced level of privacy that accompanies the product. In its earliest application as envisaged by Nakamoto, one of the features behind the technology was its use of public key cryptography that would help to conceal the identity of a sender of Bitcoin. 1 Under this regime, only an individual’s public key is available for viewing by third parties who can see that funds have been sent from one party to another on the Blockchain but without any identifying information that would allow a third party to discover the identities of the participants. Moreover, this is seen as a means of safeguarding the personal privacy of users who will have personal details made increasingly available on the Blockchain as the technology increases in prominence.