Privacy and Identity

Satoshi had this to say about privacy and ownership.

As an additional firewall, a new key pair should be used for each transaction to keep them from being linked to a common owner. Some linking is still unavoidable with multi-input transactions, which necessarily reveal that their inputs were owned by the same owner. The risk is that if the owner of a key is revealed, linking could reveal other transactions that belonged to the same owner.

Note particularly the diagram showing the updated data visibility model using BSV Blockchain.

In this new model, all data committed to the ledger is public, however thanks to Satoshi’s choices in picking his elliptic curve and signature algorithm, best in class encryption is possible.

Identity in this scenario is kept completely off-chain. The ability to read and write data on a particular part of the blockchain will be managed by the user’s device and will be dependent on the device having the particular keys needed.

This way, the user maintains control and gains the ability to assert their privacy across all of their digital property.

Using this new system, highly manageable systems can be created with ownership rights that are easy to understand, easy to control and much more.