Bitcoin has yet again been used in a critical financial transaction. This time however, the cause is known and reportedly encourages the people working for anonymity and data protection.
“Unknown Fund”, an anonymous organization, has announced to donate $75 million in Bitcoin to the startups that work for data protection and anonymity. The organization consists of common and unidentified enthusiasts from various countries who have a motive to finance the businesses that are operating in cryptocurrencies, blockchain, safeguarding of the personal information and tools of anonymity.
Today large corporations’ main goal is to gather as much information as possible about people’s personal lives and then use it to enrich them. This information tends to be of the greatest possible value to these corporations.
In contrary, these donations by the “Unknown Fund” are conceptualized to combat people’s exploitation by governments, social media networks, and other groups that gather personal data from individuals, which Unknown Fund claims has proven to be an “amazing and frightening” tool.
It is believed by the Unknown Fund that introducing blockchain technology and digital currencies will help protect the rights and freedoms of individuals and ultimately develop a new world with a trustworthy monetary system.
However, several questions are being raised by the players in business. One of them is Deirdre K. Mulligan, an assistant professor at the University of California, Berkeley School of Information. He expressed his concerns and argued that the blockchains can be manipulated by their administrators who have the power to centralize and make the data non-anonymous. He stated:
Companies can exert a lot of control over how they design an application, through its architecture, default settings, what it communicates in its privacy policies, and what it does in practice. The value for a consumer concerned about her privacy would depend on the blockchain application and the kind of data collected and processed by it.
On the other hand, other experts have shown their trust on Blockchain’s ability to conceal the data. Timothy Paolini, a board member at NYU Blockchain has elaborated the technology. While speaking to Cointelegraph in August, he expressed his viewpoint saying:
- Blockchains are built around the principles of decentralization, removing the single point of failure risk (think Equifax servers) and cutting out unnecessary third parties by establishing a more direct, peer-to-peer network. This also maintains your privacy and control of your data from third-party apps as data rests at the protocol instead of the application layer.