We're excited to introduce the latest work of CVA's CyberSecurity Working Group
Privacy Techniques for Blockchains and DLTs
The main takeaways and recommendations of this primer document are the following:
- The use of a privacy coin is usually insufficient to ensure privacy, as these are just one piece of the puzzle. A strategy should be established and implemented to ensure adequate privacy controls at different levels and with respect to different notions (such as unlinkability of addresses and confidentiality of personally identifiable information).
- Recognize the limitations of privacy mechanisms. Reliable platforms that effectively hide transaction information today may be subject to attacks that could reveal all or part of the transactions’ information, often resulting from poor operational security practices. Future technological developments may also enable the compromise of current state-of-the-art privacy mechanisms.
- Understand the regulatory frameworks and whether an asset or service has obtained applicable domestic or foreign authorisations. The use of an unregulated service may increase the risk of service disruption, theft or loss of funds. Services should have appropriate governance and transaction transparency.
- Leverage off-chain privacy controls to protect the confidentiality of personal data, of the governance model, of wallets’ structure, or of your IT infrastructure.
- Understand how confidential business and personal data will be treated, as the use of privacy techniques may not be fully mature and may harm internal system transparency, scalability and other important data security considerations.
To learn more, please download the document from here.