The importance of protecting user data & how Lomads ensures user security & encryption
When it comes to data in Web3, the importance of security and encryption cannot be understated.
In today’s world, collecting user data is common practice to create better user experience by providing personalized content and access to certain products and services. According to a consumer survey from Axway:
“…almost 60% of people believe it’s worth allowing companies to access their personal data if it means a better user experience.”
While this access to user data is crucial to providing an optimal and engaging user experience, there are downsides to collecting and storing user data. Namely when it comes to privacy, security, ethical, and legal considerations. This is especially true when it comes to Blockchains which by principle are completely transparent and public.
Any and all information stored on a blockchain is is open for anyone to have a look. So how can we ensure confidentiality of user data in Web3?
Optimal Encryption of User Data
Bridging security and anonymity is one of the major challenges in Web3. As Chainanalysis co-founder Jonathan Levin said:
“The two extremes of total anonymity and complete transparency are bad. Complete anonymity opens the door to illicit activity… On the other hand, complete transparency means no privacy at all.”
At Lomads, user data storage and security is one of our top priorities; we aim to implement a security system that enables data owners access to their personal information to use and share at their own discretion to limit any openings for potential security risks.
For this purpose, we are using Public key cryptography, also known as asymmetric cryptography, to encrypt sensitive user data. An example of this is with Soulbound Token (SBT) Metadata, and the process is illustrated below:
Asymmetric cryptography uses two different keys: the public key (available for anyone to use) and private key (known to the user only). Data encrypted with the public key can only be decrypted with the corresponding private key. This allows data to be encrypted before being inserted on the blockchain and ensures only the owner of the data can decrypt and access the data!
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