While blockchain technology has opened up new possibilities for transparency implementation, there are still some inherent problems, especially one that is deeply embedded in data privacy. So the question arises, can blockchain technology be both – transparent and ensure data privacy?

For complete privacy, remove all obstacles

The only problem with blockchain technology implementation is how end-user data are stored. This is done using publicly available ledgers.

Among other things, public blockchains like ETH smart contract,, Binance Smart Chain and, are most commonly implemented on-chain.

These systems, however, have weaknesses because they store every transaction and data in immutable form. They cannot be changed or altered, but they are also permanent.

This helps to achieve transparency which isn’t always possible with a central system. However, end-users are exposed to additional risks and exploits by third parties. Alpha extraction, MEV attacks and front running are just a few examples of such dangers.

Although this is the standard for all blockchain systems, Panther Protocol, an innovative and disruptive blockchain project seeks to change this.

In an exclusive interview with Oliver Gale, Co-founder and CEO at Panther Protocol, the blockchain enthusiast discussed the startup’s proprietary approach to solving the prevailing problem.

The public blockchain stores the end-user’s data in a publicly available ledger. It also provides a profile of end-users and any other entity using this technology. This increases the possibility of third-party exploitation, which could lead to the analysis or use of the data for unsavory reasons.

Data Privacy is just as Important As Free Speech

Gale described on-chain privacy as freedom of speech. According to him, “the paradigm of why users’ privacy is important is intimately connected to why a person’s freedom of speech is important.”

So what is it like to lose your privacy? This means that you have been placed in an unfavourable position, without any choice. Your privacy might not be considered a priority for a user on an individual basis.
Gale made the observation while explaining current conditions with public blockchain systems.

Gale spoke out about the importance of regulation when asked how Panther Protocol differs from other solutions to the surveillance issue. Gale stated that regulations are mainly used to protect consumers.

The secondary purpose of the regulation, which is an “unintended consequence,” is the introduction of barriers in competition, something which is considered unhealthy for the market.

Gale claims that Panther Protocol has been designed to be fully compatible with existing regulations. This further implies that access to user data is solely the end-user’s responsibility.

It is up to the person to disclose their information. Disclosures could include tax payments, or a source for funds when they want to work with financial service providers.
Gale.

Panther Protocol is, in this instance, the secure channel which links end-users (or actors) to DeFi. A user is able to interact privately with DeFi projects.

“The financial service provider using Panther Protocol has an obligation to comply with their regulatory status. Panther facilitates negotiations between actors when they use its service.
Gale explained.

Panther Protocol helps end-users negotiate what data can be made available during compliance processes like KYC for DeFi specific projects.

Gale says that “negotiating” simply refers to the user signing, or partially signing, a transaction/disclosure proof and making it available for the third person to complete signing.

Panther Protocol will broadcast a part of transaction history depending on whether an agreement has been reached. This information can only be accessed by third parties for the purpose specified.

Panther Protocol uses the bouncer analogy to describe its compliance strategy. It has three levels of compliance and data disclosure. In order to comply with the first, an end user must reveal all their personal information. The second requires that details be disclosed upon request. The third tier, dubbed “zero proof,” allows users to verify a data set without revealing the data itself.

Panther Protocol is committed to ensuring compliance enforcement at the lowest cost. This proprietary system provides financial institutions with an easy way to participate compliantly in the DeFi Economy.

To The Flipside

• Current data disclosure and compliance is far too dependent on technology. This could lead to paranoia in users, who might be reluctant to share their data.
• Panther Protocol requires users to sign a disclosure form. This is not enough to eliminate any suspicion of hacking by third parties.
• Panther Protocol uses novel selective disclosure strategies, which implies that technology is in a very pivotal stage and could be modified.

Care!

Current compliance is flawed. There are many challenges, from hacking by third parties to high enforcement costs. A platform such as Panther Protocol can be leveraged by all parties, regulators included.

The full interview can be viewed here

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