Data Privacy in the Age of Blockchain: Balancing Transparency and Confidentiality in Financial Transactions

Abstract

The blockchain technology is effective, safe and transparent regarding the financial transactions, but the confidentiality of the information is under risk. The presented paper deals with the problem of the compatibility of blockchain transparency and confidentiality of financial transactions. It examines solutions, including privately funded blockchains, zeroknowledge proofs, or cryptography to maintain privacy and also offer regulatory certainty. The study emerges with the threat to privacy, ethical issues and need of effective regulatory frameworks. Finally, it gives its recommendations on how the privacy features of blockchain can be improved without interfering with its core idea of transparency in the financial sector.