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Are you arguing for the processing of sensitive data on a public proof-of-stake blockchain? First, automating the detection of malicious acts against sensitive
by taink 4y ago
Are you arguing for the processing of sensitive data on a public proof-of-stake blockchain?
First, automating the detection of malicious acts against sensitive data seems pretty difficult. So this can't be implemented to systematically occur, and has to be determined after the fact by an investigation. Then, if a malicious act has been detected, the stake is slashed (and the acts are reverted where possible).
Is my understanding sound so far?
Because this would mean in any case where a slashed stake is considered an "acceptable cost" to the bad actor, then the sensitive data is fairly accessible -- the stake is effectively a paywall. And raising the stake is a difficult decision because higher stake means less actors and higher risk of collusion.
I mean this is probably fine for a very large public blockchain where detecting malicious acts is not as difficult or where the malicious act is not very profitable, but sensitive data can, depending on its nature, be extremely profitable to exploit (and as I stated, I don't see how it could be easily detected).
With sensitive data, "trusting" an organization only means having a legal agreement or strategic alliance with a third party. In these circumstances the consequences are usually more serious for the malicious actor than the loss of an arbitrary amount of money.
I've seen suggestions to do sensitive (e.g. medical) data processing on the ethereum blockchain from some enthusiasts and I have never been able to understand this beyond assuming they have a insufficient threat model in mind for this kind of data.