This article discusses the difference between the levels of anonymity on private blockchains and public blockchains
Enterprises looking to integrate blockchain technology often ask how data on the blockchain is publicly verifiable, yet anonymous?
- As public ledgers, Bitcoin blockchain and Ethereum require transactions to be visible by default.
- Ethereum network offers pseudo-anonymity; for example, transactions are linked to addresses that correspond to public keys derived by user-held private keys, not by username or password.
- Certain technologies are currently being developed and tested for Ethereum 2 and Ethereum 3 that add an enclave of privacy to public Ethereum, namely, zk-SNARKs.
- A zk-SNARK is a cryptogaphic proof system that allows users to maintain private transactions while validating the transactions according to the network’s consensus algorithm.
- Once zk-SNARKs implemented, organizations will be able to transact on the same network as their competitors in complete privacy, while enjoying the security of the public Ethereum blockchain.
- Until then, enterprises can utilize public or private Ethereum to address a wide variety of use cases.
Deep dive into the levels of anonymity on private and public blockchains on ConsenSys.net →
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Originally published at https://consensys.net.
How Is Blockchain Verifiable by the Public and yet Anonymous? was originally published in ConsenSys Media on Medium, where people are continuing the conversation by highlighting and responding to this story.