What is Data Privacy?
Let's find out Data Privacy meaning, definition in crypto, what is Data Privacy, and all other detailed facts.
Data privacy is the protection and security of the personal data of users. This encompasses the handling of sensitive user data, consent, and regulatory requirements.
Data handling covers three categories:
- Traditional data protection (backup and file restoration)
- Data security
- Data privacy
According to data privacy and protection principles, digital entities are the sole actors who must handle their personal data. Furthermore, they must fully comply with any privacy laws.
Data plays a significant role in the current digital ecosystem, as large data units are treated as valuable assets. Big Tech companies develop data analysis tools and utilize data economics to increase profits.
Decentralized technologies, based on the blockchain framework, offer users complete ownership over their own data. This means that the data privacy principles of centralized digital technologies do not apply to blockchain.
However, there is an aspect of data transparency in blockchain networks that makes transaction data visible to all users. User identity can be protected if their full name is not linked to their cryptocurrency wallet address. Otherwise, this information can be readily available to other members of the network.
Some platforms like cryptocurrency exchanges require users to follow the Know Your Customer (KYC) procedures which require them to reveal their identities. To maintain their personal privacy, users may utilize decentralized tools such as privacy coins, private wallets, or mixers.