Digital Asset Holdings unveils fix for blockchain privacy concerns

Innovation | December 8, 2016 By:

Digital Asset Holdings is deploying what it calls fingerprints to address blockchain privacy concerns.

“Our view is that sensitive, contractual, market-moving, private data should be kept private. Let’s think about what regulators and regulated financial institutions care about. First of all, it’s privacy,” said Digital Asset Holdings chief executive officer Blythe Masters.

The approach is similar to what Digital Asset competitor R3 said it was developing earlier this year. Richard Gendal Brown, the former executive architect for industry innovation and business development at IBM, built a blockchain platform for the company called Corda that greatly restricts the information it shares among its users. Last week, R3 released Corda’s source code to the public.

The fingerprints — also known as a hash — are important because they represent every transaction in a given market. For a user to trust the Digital Asset system as its ledger, it must be able to ensure only trades it authorized are attributed to it. That means if a user scans for all its trades and finds some that it didn’t initiate, it knows something fishy is going on. The veracity of the ledger can only be verified if every single trade that’s ever been executed within it can be referenced and double-checked.

Digital Asset Holdings is a startup trying to develop mainstream uses for blockchain technology.