Privacy-focused platform says it solves burning issues in blockchain and DeFi space

Friday 11 June 2021, 5:17 AM AEST - 1 week ago

A privacy-enabled blockchain platform says its goal is to build a responsible data economy and usher in a new era for this technology.

Oasis Protocol says it brings privacy and scalability to DeFi — ensuring that this new approach to finance can expand beyond early adopters to reach the mass market.

Controlling privacy

Support for confidential smart contracts is a key differentiator of the Oasis Network. The contracts play an important role in preserving privacy by allowing a trustless decentralized blockchain without having to make that smart contracts data public. This leaves the network able to solve emerging problems in the DeFi space like front-running and market manipulation while also making advances in the tokenization of data assets.

Tokenized data can also solve some of the burning issues that exist in todays online world, including how personal information is monetized. According to Oasis, the Parcel SDK allows the development of tradable data-backed tokens allowing everyday users to give explicit permission to apps that want to analyze their data — and control how sensitive information about them is consumed. This would allow novel ways of monetizing that personal data, from selling or trading it in a decentralized marketplace to staking it in exchange for rewards.

Concern about data privacy is not limited to personal information. Among other issues, mercenary traders front-running transactions by buying and selling based on orders locked in unvalidated Bitcoin blocks has plagued the broader DeFi ecosystem for a long time. By keeping transaction data and order books confidential, privacy-focused blockchains like Oasis Network can put an end to market exploits available on most layer-one blockchains.

Adding the ability to keep data private yet highly available and verifiable is good for more than just front-running. It encourages the expansion of DeFi from early adopters to a mainstream audience.

These confidential smart contracts would let lenders analyze sensitive data like bank records and social security numbers without exposing it to the rest of the network— allowing them to offer loans with more competitive rates and less risk. Privacys potential to overcome challenges emerging from the DeFi space are key to the Oasis Networks ability to support the next generation of open finance.

Promoting scalability and flexibility

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