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Hi there everyone, TheRingMaster is back again with another Web 3.0 based blog and in today's blog I would like to address a very important question which is kind of a blockchain dilemma at the moment in my opinion.

I'm pretty sure there would be varying views on this question but is privacy more important to you than security? - Let me know in the comments

• I personally would prefer a system that would prioritize security but I believe there are situations where privacy in itself can become a security issue. So which do we prioritize on Web 3.0 or how do we handle both cases?

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The Privacy and Security Dilemma of Blockchain

We know that the main aim of Web 3.0 is to give power back to Internet users and this is achieved by making data decentralized and allowing peer-to-peer interactions based on blockchain technology and not conventional Web 2.0 servers.

However this progression has brought about two very crucial areas of concern, privacy and security of user data. I cannot say one is more important than the other because you could have a scenario where either of the two would totally screw you over completely. The main issue is which should be given priority over the other.

Blockchain makes data or transactions of users transparent by recording every single transaction in public ledger meaning anyone has access to any transaction you made. While that has so many use case in mitigating fraudulent activities, it ends up exposing users as well.

Perhaps if there's data or transaction you would like to keep private for personal reasons that are not illegal, it would be pretty tough to do that.

When it comes to security on Web 3.0, user data protection, secure transactions and dApp integrity are all aspects of it. Blockchain’s immutability ensures tamper-proof security against fraud or any other form of hacking. But like I explained earlier, this same quality of the chain can be a challenge when correcting mistakes made unintentionally or maliciously.

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The Challenges We Face On Web 3.0

To get the fuller picture I'll briefly enumerate all the challenges we face which is actually because of the benefits. It seems like to any and all advantage there's a downside.

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• Transparency vs Anonymity

We already know that all participants on a blockchain can view every transaction to enhance security by preventing double spending and also ensuring accountability to any thing done on the Blockchain. This would me you can be tracked and that's good for the chain but what if you're being tracked by someone that you consider as an enemy who has malicious intent against you?

Of course it's transparent but apparently there's also a level of anonymity on Blockchain. Take Hive for example, a lot of the accounts here don't go by their real name to maintain some level of privacy or anonymity and that makes it possible to have transactions pseudonymously. (This means using false name). Despite the fact that transactions are pseudonymous, it is actually possible to link them back to real world identities using advanced analysis techniques. So to some degree it's not really private.

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• Immutability

One of the most dominant attributes of Blockchain technology is its Immutability where transactions made and recorded are unchangeable. Once recorded on the blockchain, data cannot be modified anymore thus guaranteeing accuracy but also leaving exposed sensitive information permanently open to access by anyone anyday anywhere.

So we're certain a transaction happened as long as it was recorded but some of that information can be used against individuals, which is sadly the downside of such a great concept.

https://img.inleo.io/DQmWRYoMxibJZbKCvuVWmRPW42KAj2482ZihWnaXWzZJgdt/equal-8791515_1280.webp

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Balancing Privacy and Security - Possible Remedies

Discussion of privacy and security prioritization is still an ongoing topic and the good news is that there are some solutions being worked on that could help us strike a balance between the two.

One of such solutions is Zero-Knowledge Proofs (ZKPs).

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Zero-Knowledge Proofs

Immutability is a security advantage on Web 3.0 but creates a problem of not being able to correct a genuine mistake. Now in a situation where a mistake transaction is done and the user seeks to prove that he or she is the owner of the content or responsible for that transaction to the verifier, the user would end up exposing sensitive detailed information just to prove.

That is one serious problem but with the help of ZKPs which are cryptographic methods, users can still prove their claim without being required to reveal more information to the verifier. So this would help maintain privacy within public ledgers by allowing the confirmation of transactions while maintaining transaction details undisclosed.

There's certainly more work that needs to be done to make tools like this more accurate but I'm hopeful we'll get there with all the advancement going on.

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Privacy Coins

Just in case you're not aware of the existence of crypto coins that are more private well I introduce to you privacy coins. Privacy-focused cryptocurrencies like Monero, Zcash and Dash use advanced cryptographic techniques that mask transaction details, providing greater privacy than traditional public blockchains.

These privacy coins make it challenging to find who sent how much to who and it's perfect when you want to keep some of your financial transactions private. I haven't necessarily seen any second layer privacy coins on Hive yet but I would be glad to hear from my readers which you think would be the best.

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DIDs

With the sole aim of privacy, DIDs create an environment where your true identity and blockchain identity have minimal linkages to one another. It’s a great thing that people can have their own digital identities created by themselves and even be free from central authority.

Through carrying out activities on web 3.0 platforms, users’ personal details remain intact. I think it can be easily integrated into a future technology as Metaverse where users will still maintain their real life identity while having a virtual or digital identity

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Selective Disclosure

Transparency is a good thing but not all the time. There are situations where the financial details of a transaction is better off disclosed. Perhaps you don't want certain data out there. This is not always for a bad reason but to protect yourself.

• Personally I prefer my net worth hidden from some close relatives not because of malicious intent but if some get to find out, they may start demanding money thinking because I have it, I should give it out to them but that's not a good financial decision.

That's a perfect scenario where some financial details would have to be selectively disclosed.

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As we keep advancing Hive and all other Web 3.0 projects I'm hopeful that better and more adequate solutions for this privacy and security dilemma will be introduced.

The argument about whether privacy or security is more vital in Web 3.0 continues to rage on though. But honestly, both need to be considered together in order to build a decentralized web that is trustworthy and focuses on users’ needs. What do you think?

Posted Using InLeo Alpha