Addressing Data Breaches: The Role of Blockchain and Encryption in Enhancing VPN Security
Summary:
This article discusses the increasing need for data privacy amidst frequent data breaches. Companies like Toyota have suffered recent hacks, causing concerns over the security of personal and financial data. Despite the perceived protection offered by Virtual Private Networks (VPNs), they are not completely secure and some store user data covertly. The article mentions a conversation on The Agenda podcast where Nym's co-founder and a security consultant discuss using blockchain-based mixnets and decentralization to enhance VPN security. They also advocate for the use of encryption to narrow the gap between surveillance capacity and individual data protection.
The importance of data privacy and the ongoing efforts to safeguard it is a discussion that is being undertaken globally almost daily. Just two days ago, on 11th December, Toyota alerted its customers to the possibility of a data breach by revealing that "personal and financial information was potentially exposed during an attack." Data breaches happen so frequently that they could almost be compared to the number of rugs and protocol exploits for which cryptocurrency is well-known. Notable breaches include the Kid Security app, which led to the compromise of 300 million data records; 23andMe genetic and research company, whose breach threatened 20 million records; and the MGM studio hack, with an estimated damage of $100 million. This trend makes it unmistakably obvious that data is like gold, and hackers are like pirates chasing after this treasure. Equally clear is the difficulty that businesses and governments face in safeguarding themselves and their customers against these breaches, creating a need for individuals to take efforts to secure their own data. One of the simplest measures is to use a virtual private network (VPN) while online. However, even VPNs are not immune to attacks, and some of them are known to secretly keep user traffic data and share with parties that users may not wish to divulge such information to. This puts users in the position of needing to trust that their chosen VPN will not leak their data.
In an episode of The Agenda podcast, hosts Ray Salmond and Jonathan DeYoung interviewed Nym co-founder and CEO Harry Halpin and Nym security and hardware consultant Chelsea Manning regarding the application of blockchain-based mixnets and other aspects of decentralization to fortify VPNs and protect personal data of users. Despite popular belief that VPNs are secure, most of these networks are also centralized. Halpin explained that VPNs know all the data, activities, and IP address of the user, affiliating them with their billing information and the websites they visit.
Nym's mixnets, in contrast, transmit encrypted data over several servers. This process involves adding "a bit of simulated data" at each station—"it mixes the data up...like a deck of cards being shuffled then sent over to the succeeding server." Introduced during the 1980s, Mixnets operate on an extensive number of servers—which may not always be feasible; this gap is where Nym comes in.
Nym tackles this issue by using a blockchain to log the voluntary servers along with their key material, IP addresses, and so on. It also provides a reputation score to ascertain their reliability and has a crypto-based incentive system for payments.
Chelsea Manning further encourages people to use as much encryption as possible. She advises that the more people use privacy technology, the harder it becomes for surveillance networks to extract information. Manning sees privacy technology as a means to widen the gap between surveillance capabilities and personal data protection.
Catch Halpin and Manning’s discussion with The Agenda in the full episode on Cointelegraph's Podcasts page, Apple Podcasts, or Spotify. To stay updated, also check out Cointelegraph's other shows. This article, mainly informational, must not be misconstrued as legal or investment advice. The views expressed here are solely those of the author and may not necessarily coincide or represent the views and opinions of Cointelegraph.
Published At
12/13/2023 4:20:00 PM
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