Can blockchain technology protect bosses' privacy in the Panama Papers?

Rage Commentary : The information leakage of Panama's law firm Mossack Fonseca has brought them a lot of trouble, so they released the Panama Papers with blockchain technology to protect the privacy and security of users. The decoders of IBM Labs have developed an identity management system, in which the smart contracts can clearly know who has browsed the information, successfully protecting the privacy of users. Blockchain technology can not only protect user privacy, but also save costs, shorten processing time and reduce the risk of fraud.

Translation: Nicole

The leak of a large amount of internal documents from Panama-based law firm Mossack Fonseca, which specializes in creating holding companies, embarrassed several world leaders and ultimately led to their resignations. Can blockchain-based systems better protect user privacy?

No matter how many world leaders take it lightly, the release of the Panama Papers (11.5 million documents covering 2,140 offshore entities over four decades) was a big step forward. Governments only work with public information, even if it may have been illegally leaked. With such a large amount of information leaked, we have to ask — can a blockchain-based system be more secure in protecting users’ private information?

Jerry Cuomo

IBM Vice President Jerry Cuomo said:

Blockchain can create more trustworthy and efficient technology, and its core purpose is to solve the concerns about security and privacy. He regards this as enterprise-level blockchain technology.

IBM, which is at the forefront of the Linux Hyperledger project, is taking blockchain applications a step further. Cryptographers at IBM Labs have developed an identity management system that protects the privacy of user transaction information (anonymous and unlinked to transactions). Privacy controls in smart contracts can clearly know who has accessed this information. Once these applications are commercialized, we will see a huge change in the way secure information is stored.

Whether the rest of the world likes it or not, tax havens and secretive companies are a fact of life. If a law firm like Mossack Fonseca implements a blockchain-based security solution, neither employees nor hackers will be able to expose the details of their clients. Better privacy and security is just one of the features of blockchain-based solutions, there are many other benefits such as cost savings, shorter processing times and reduced risk of fraud.