Hashbon FiRe
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Hashbon FiRe

Data storage security: how to avoid information leakage

Hello Hashtronauts!

Together we continue to explore the world of crypto, Web3, and blockchain & its aspects. Today our article will be dedicated to data storage security, where we explain why, in general, information is leaked and tell you how to protect yourself. The motivating factor for this article was the latest news about data breaches in Opensea (the NFT marketplace) and Wegmans (the grocery chain), which perfectly illustrates the range of information that can be stolen. Make yourselves comfortable, prepare some popcorn, and grab a notepad to jot down important insights.

Each time we access the Internet space, we both draw information from it, and — in return — we leave data about ourselves, this is a cyclical process. Data is one of the most valuable resources in the world. In addition to the fact that users accidentally leave information traces, it is not always known why and what information the site collects. Many people use online storage services such as iCloud because it is convenient and seems secure. However, history shows that many resources that store user data use a centralized method in the form of servers, where, by hacking just one of them, attackers can extract all the information they need.

Decentralized Alternative

Blockchain is one of the main technological advancements of the 21st century. In contrast to the existing centralized system, blockchain is now being used in areas such as financial transactions, user identification, or the creation of cybersecurity technologies. Blockchain stores data in a decentralized manner using a network of nodes, in order to steal information from such a network, all nodes must be hacked. This storage system is well reflected in the saying “don’t put all your eggs in one basket”.

Bitcoin is the best example of how blockchain technology can be applied, it has deeply come through our daily lives and has proven to be exceptionally effective as an investment, means of payment, and a source of income. Bitcoin allows a network of users to complete transactions without the intervention of a third party. Today, any user can store their data and altcoins in this cryptocurrency ecosystem without fear of a hacker attack.

How does blockchain protect data?

First, you can break the data into fragments and store it on the blockchain, which is based on distributed ledger technology (DLT). The DLT acts as a decentralized database of transaction records between various parties. The operations make the DLT work in sequential order, and the data is stored in the registry as a sequence of blocks, an interconnected chain is formed between the blocks, files are segmented, encrypted and distributed among decentralized nodes around the world. Individuals and businesses can generate income by renting out unused space on their hard drives to other users.

Second, smart contracts can also be used with blockchains. This ensures that transactions occur when certain conditions are met, meaning that records can be programmed to change or update automatically. If someone changes the data, all registries on all nodes in the network confirm that the change has been made.

Third, you can encrypt your data and be the only one with access. To do this, you need to store the cryptographic signature of the data on the blockchain. This system ensures that when viewing a file, you see the version of the document that existed before.

Can such a system be hacked? In theory, it is possible to hack it, but for this you need to hack all the nodes at the same time, which is currently impossible, meaning that this is now the most secure system.

So we have sorted out the technical part of the issue of data storage. When it comes to personal data, it is always better to know as much as possible for a restful sleep.

Hashbon Pass: your personal data defender

To issue the NFT Passport or Hashbon Pass, you also need to provide personal data, because no document can exist without it. How secure is Hashbon Pass? Let’s figure it out. (Spoiler — nothing is safer than Hashbon Pass)

The Hashbon Pass protocol is the first ever Anonymous KYC, through which DeFi services — including DEXs, IDO platforms, lending platforms — understand that they have a verified user active on their platform, determine their age, citizenship, and their presence on blacklists, all without having access to their personal data. At the same time, the user’s personal data is stored only by licensed verifiers who issue NFT Passports. Such verifiers have licenses that comply with GDPR, which gives them the authority to work with clients’ personal data.

According to the protocol, the service provider initially trusts verifiers, and does not require direct access to personal data, which is why the protocol does not include the functionality of transferring user data without the user’s authorization.

If the service does not want to work with a verified user and intends to acquire their personal data on their own, their attempt will prove to be unsuccessful. Users should not worry about server-side data leakage. Learn more information by reading our Whitepaper.

All things considered, you can rest assured that your data is fully protected with Hashbon Pass. Our goal is to completely phase out the industry’s bad practices with regards to user data and thus, protect your online identity. So here’s to a world where data is safely handled, and here’s to staying anonymous!

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