Nasdaq Collapses on Facebook Crisis – Why Blockchain is The Best Way to Protect User Data

The Facebook crisis, triggered by a company that used user data to influence the election of the president of the United States of America. it is bringing down the American stock exchanges, significant losses have occurred in the last days.

Facebook problems show that the system is not totally capable of protecting data. According to a cryptoslate report, Facebook’s wake-up call could be the shock to the system that brings nascent ID blockchain management projects to the next level for adoption.

It is expected that the collapse of the Nasdaq will continue in the coming weeks and then what does this mean for cryptocurrencies? Are there any correlations? according to some studies the correlation between the markets themselves is weak, but there is a noteworthy correlation between the sentiments of the two markets.

The amount of data in our world is rapidly increasing. According to a recent report, it is estimated that 20% of the world’s data has been collected in the past couple of years. Facebook, the largest online social-network, collected 300 petabytes of personal data since its inception – a hundred times the amount the Library of Congress has collected in over200 years. In the Big Data era, data is constantly being
collected and analyzed, leading to innovation and economicgrowth. Companies and organizations use the data they collect to personalize services, optimize the corporate decision making process, predict future trends and more. Today, data is a valuable asset in our economy.

Blockchain technology has been one of the major technological breakthroughs of this century. Bitcoin, the first Blockchain application, allows a network of users to perform transactions without requiring the trust of anyone on the network, or a third party. Everything is encrypted, and nobody can tamper with the Blockchain without everyone else noticing immediately.

There are a few ways that a Blockchain can be used in distributed storage software. One of the most common is to:

  1. Break up data into chunks.
  2. Encrypt the data so that you are the only one with access to it.
  3. Distribute files across a network in a way that means all your files are available, even if part of the network is down.

Essentially, instead of handing your files to a company like Amazon or Microsoft, you distribute it across a network of people all over the world. The cloud is shared by the community, and nobody can read or tamper with anyone else’s sensitive data. In other words, you stay in control. This could also be useful in public services to keep public records safe, available, and decentralized.

Another model is to just save a cryptographic signature of a document or file on a Blockchain. This would give users a way to ensure a file is untampered, without needing to save the entire file on the Blockchain. When you look at a file, you can guarantee that it is the same version of the document that existed at another time.

Smart contracts can also be used with Blockchains. These ensure that certain transactions happen when certain conditions are met, meaning records can be programmed to be changed or updated automatically.

There are some awesome benefits to using a Cloud storage model. Including:

  • Peer to peer networks can make download speeds lightning fast (similar to torrenting).
  • Your data is distributed all over the world, so it is highly available when you need it.
  • You don’t have to worry about anyone else having access to any of your data.
  • It can be extremely cheap – as low as $2 per TB per month.
  • If you have some extra space lying around, you could ‘rent out’ your free space and actually earn money.
  • With a large network with many reliable participants, clever techniques could mean a very low level of redundancy factor, even as low as 1.5.
  • The immutable nature of Blockchain records means you can know if a file is accurate and unaltered.

The Facebook scandal emphasizes the problems of the internet currently centralized, in which large companies obtain personal data from users and use them to make money by taking a dominant position. But now, thanks to blockchain technology, things can be changed: new services will solve these problems, and there will be a new era for the internet.

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