Blockchain Privacy Problem

May 20, 2019 posted by



ah but before you say anything before you say anything yes I have left YouTube I have left YouTube I'm over at failed normal comm I simply cross post a few videos every once in a while as a form of advertising to tell folks where I actually am so if you want to see the videos that I'm currently doing take a look at failed normal Calm hello again as you know I am Eli today we're gonna be talking about privacy problems with the blockchain one of the big main I would argue main privacy problems with the blockchain and nobody seems to be talking about there's this big thing with the blockchain now a lot of people are saying you know asking what the blockchain can be used for you can use it for for currencies crypto currencies you can use it for this at that and the other thing and one of the ideas that's come up is that you can use this for privacy the idea being is that you can document all of your information into your own little block game wallet type thing and then you can simply give out your data when you want to so the idea being instead of all of these major corporations having massive databases with everybody's data in it that can give you compromised and they can be used however they want to use it the idea is we will all we will regain ownership of our data now there are some technical issues with the blockchain and privacy just how its created but I think there's a bigger privacy issue that keeps getting skimmed over because most of the people talking about blockchain and privacy are 22 year-olds or people that are trying to make a lot of money off of the blockchain and so they don't want to they don't want to talk about standard business practices and how technology and databases get used in the real world so they say these things they say these things like you will regain control of your information and then they just skip over how things work in the real world so I want to talk about that today now if you're watching this on YouTube right now again if you think I thought you left YouTube yes yes I am over at fail normal calm fail normal calm is the primary place where I am I simply do some of these videos and post them as a form of advertising I will say I will say I don't know I still think YouTube is gonna die and all that but right now YouTube is a great form of advertising I post one or two of these videos over here on the YouTube channel every week and it's great for pushing people to fail normal calm whether they make any money whether my channel will be around you know a few months from now who the hell knows but as an advertising thing it actually is useful so one of those things to be thinking about if you're thinking about going into YouTube using your YouTube channel to push people to whatever platform you use to actually make money actually it's a good way to go and today we're gonna be talking about over there and fail normal my first my first impressions of my new Mavic Pro I got one of these Mavic Pro drones yesterday they're actually gets the day before I was playing with it yesterday and I do have to say I like the Maverick Pro the Maverick Pro everybody thinks I'm all pessimistic about technology and I'm gonna be snarky as a LaBella blogger a to that but everybody thinks I'm snark I'm just narky and pessimistic about all technology no all contracts all contract just because most technology that's coming out anymore is crap doesn't mean that there isn't some really cool technology that comes out and I love this Navajo I was playing with this one yesterday you know playing around dealing with it and I'm very excited about it I'm very happy with it unfortunately I did crash it you can see I don't know if you can see the green marks on there yeah I did end up crashing it thankfully I crashed it like three feet over the ground I ran it into some bushes by accident but that's one thing I'm gonna be doing a video today over it fail normal talk about my first impressions of the Maverick Pro but my first impressions thumbs up thumbs up for all those people out there for all those people that think oh oh I just hate technology no no when you create a good piece of technology that makes half a bit of sense this is a good little thing so first impressions good but any that's for feeling on so let's talk about the blockchain for a bit because there's this whole idea that's going around as get promulgated by a lot of people that using blocking because that's a big thing right now with blockchain right Blanka a more or less like when you think about blockchain just understand it's essentially a different type of database right we have a relational days that we have no sequel databases and I would argue we have blockchain and databases essentially with the database it contains data rows columns all that kind of stuff the big thing with blockchain is that it distributes the database amongst all users within the network within the connection it's you can't go back and modify the database afterwards and there's a whole bunch of security checks in there so basically when you think about the blockchain it's essentially a database this is good for crypto currency because essentially since is a database what the crypto currency has done is the whole idea of you have this whole system of mining in order to create new Bitcoin or whatever else and then there's just transactions so essentially once once the bitcoins or whatever currency has been created I transfer to Bitcoin you know to Bitcoin gets transferred from this wallet to this wallet three Bitcoin gets transferred from this wallet to this wall and then there's this whole synchronization process and security process going on so it's been it's been really good for crypto currencies because essentially all all crypto currencies are is it's essentially like a digital ledger you have the process of mining to create the coins so you create the coins when the coins get created and then have that whole process going on that gets dumped that gets registered to a particular wallet code so particular wallet code and then pass that you know this this wallet transfers to Bitcoin to this wallet this wallet transfers Satoshi to this well this wallet transfers you know bla bla bla bla bla bla bla and essentially you've just got a big massive you know really high-tech spreadsheet so blockchain has been really good for for crypto currencies just as as the whole thing you start seeing other places where blockchain is starting to be used with things like again I'm an adviser theoretically I suppose they haven't talked with me for a while for a library so library is a distributed distributed blockchain video system basically it's just trying to use the blockchain to be a competitor to YouTube the idea there is that you use the blockchain essentially as the index for where all the video files are stored so you take the video files you chop them into these things called shards you then store those shards through all these computers in the network and then you have the blockchain and the blockchain then when you go to watch a video file the blockchain is the index to say that video file or the parts of the video file or start at all these places and so that's that's the real value of the blockchain so you have this distributed non-centralized you know what's it called you can't go back and screw with the kind of database and so it's a valuable thing but one of the issues that comes up one of the one of the things that comes up with one two selling points that comes up I think people are just pulling completely out of their ass I don't even know where where this comes from is this whole idea of that you can regain privacy so the concept here is is if it's a database right and so for wallets or whatever else if a wallet can store oh all kinds of different information why can't it do things like store your health records right so this comes up a lot with the whole idea of blockchain will allow you to control your health records so the idea is you would then be able to put all of your medical information into your wallet then it would be like there would be like this process like if you go to the doctor and the doctor diagnoses you with cancer or whatever essentially it's kind of it's kind of weird it's kind of like they they transfer cancer into your wallet right or if they do x-rays or if they do so basically dr. which is this wallet you know transfers cancer or transfers arthritis or cancer further transfers you know taking take thirty midol or whatever it is you know for for 30 days or whatever and so that gets transferred into your wallet but then the idea there the concept being is since this information goes from them to you gets put into your wallet or however you're storing it then what you can do is you now control your health records and so when you go to the doctor when whenever you go somewhere else let's say you're a woman you could you could then show the doctor anything pertaining to your heart but not necessarily show them anything to do with fertilization procedures or whatever trying to have a baby right the idea that you can then control your health records you can show certain things so you could show the doctor the last two years event from not the last 20 years of information so everybody's excited about this privacy brah privacy we want our privacy back what a privacy back right come on no it doesn't come up so so that's that's been a big thing the problem with this issue is everybody keeps focusing on this component of privacy from the concept of the technology side of this so the idea of can you create wallets can you store this data can you come up with some kind of technology so that so that doctors can put information into your records and then you can give those records to to only the specific people you want so only this doctor can see it only right that that's that's been the big question one of the big things that doesn't come up with this though is the idea of that's not how the real world works that's just not how the real world works so you can do all of this you can come up with all kinds of fancy technology that you want but at the end of the day it's probably not going to matter I think about this like one of the things with this whole idea of using block shaper of privacy is the idea of like getting ads or whatever when you go web browsing the idea of your personal information will be stored within your wallet and then the idea when you go to websites you would only give the information that you want to give the problem is here and again this just isn't how the real world works all of these websites want to track you as you move around the internet they're just tracking your track and your track and your track and your track and your track and your tracking you and they try to figure out new ways to track you so like with the cookies so back in the old days we had we had cookies we had tracking cookies right so that was the big thing gonna use tracking cookies if this cookie gets created on this website then other websites can you–can can read the tracking cookies well then the thing that happened was people realized that and so they started going through cleaning out their cookies that type of thing and then and then the web advertisers then started creating like super cookies and the idea with super cookies was when you go to a website and it drops a tracking cookie onto your on here your web browser then as you're going through it's also the the websites are able to collect a lot of other information about you so now I'll I can drop that cookie in that tracks you a little bit but then they know what your IP address is if they know what your IP address is they know what your ISP is if they know what your ISP is they can figure out things like well not just to the ISP but they can figure out things like your screen resolution your Java what version of Java or you're running what did Joe version of Adobe Flash you're running all of these different things and so what they're able to do is they're able to essentially recreate the cookie so you find a cookie on your thing you delete it as soon as you go back out on the internet again they have all this information about you and so they recreate and that's basically the whole idea of the the super cookie is that they're always able to track you even if you try to get rid of the cookie until this is one of the big things that comes up is you have this idea okay I'm going to put my privacy I'm going to put my information into this wallet and then once I have the information that's wallet then I can control my information huh there's a problem again and it's like Socratic method it's it's conv it's it's it's you know about what you're two actually talking about no if you put your information into the wallet then you can't control who has access to the wallet that doesn't mean you can control who has access to the data because again people are tracking you using multiple of different methods and therefore even if you even if you have your wallet secure even if you don't allow anybody else to use your wallet they're still trying to track you and they're still trying to figure out who the hell you actually are and so that actually doesn't work out at the end of the day this is a big thing like with things like medical records right so the idea that you can control your medical records well if you go to a hospital if you go to a doctor's office you're dealing with an insurance company none of these people want to deal with your stupid-ass database right so you you you have your little blockchain information like a my the thing is if the hospitals if your insurance company if all these people don't use the exact same database then essentially what's gonna happen is they're just gonna they're just gonna grab your information and then put your information into their database and then it's just as insecure as before you you had your little little blockchain wallet right and that's one of the things to be thinking about it like if you go back and you look at the whole issue with piracy so piracy you know illegal you know music you know ripping music ripping videos and all that kind of stuff and there was a there was a musician back in like 1997 and that's one of the things he said is he said that once music went digital once music when did just digital like even before even before Napster even before all the things that happened since then even before DivX and all that kind of stuff once once music goes digital that basically the the creators of the music lose control of the music because now it simply becomes just incredibly easy to copy to share so on and so forth so back in the day when I was a kid you may have like a you may have a record right you may have a record or you may have a tape and theoretically you could you could copy tape so you could record specific music but it was just a real pain in the butt like it just physically took time to do it like if you're if you were going to copy a tape you know if that tape was 60 minutes it literally took you 60 minutes to copy the tape it's not like today you know in 60 minutes you can copy you know I don't know hundred gigs worth of music or videos or whatever just a huge amount so the idea is that once once the the video files once the music files go digital at that point you lose control over it and if you think about it if you lose control over music files if you can use lose control over video files simply by them going digital then how the hell are you going to keep control over something is things like your date of birth whether you have a cancer diagnosis all of these other kind of little things just little texts essentially text that gets associated to you how the hell are you going to end up controlling that it's not really going to work out that well at the end of the day there's this idea okay I'm gonna put myself into the blockchain and then it's gonna be secure but then there's how the real world operates again every time you go into a doctor's office and you write all the information down you know that gets put into their systems that's in their databases now and that'll be in their databases forever every time you release information that goes into databases and the thing to understand is that many of these databases all talk to each other so if you put your information in this database over here and this information goes in this database over here and information goes into this database over here it's not that hard to get the things talking to each other that's like with with Facebook I mean I think was a stupid stupid PR disaster but the whole idea where Facebook was going to be working together with doctors offices and hospitals in order for doctors to be able to have information about their about their patients what was doing on Facebook right and that's the thing is because if you have if you have the diagnosis and everything in the doctor's office and you have all the social information on Facebook really that all it is is is connecting those two in the middle which becomes relatively easy and that's what's um one of the things that that blockchain doesn't save you from so this is just one of those things to be thinking about again a lot of people think that I hate blockchain and I don't hate block it I don't hate blockchain at all my big problem with blockchain is that it's like the second coming of the PC or something like and again now that's what you hear so much like you know you were there you know the people that were there for the beginning of the internet made their billions of dollars so you want to be there for the beginning of blockchain and the thing goes with blockchain I would argue blockchain is much more like no sequel right so no sequel database system really came came into the fore with with social networking basically very fast very scalable database system it was great has it has issues had its good points right and that's the thing that I would argue a blockchain is blockchain is just it's a new database system can be good for many things again library I think it's interesting crypto currencies I think it's interesting I think it's one of those things it hasn't really I don't think blockchain has really found its good purpose yet kind of like with no sequel because that's the thing with no sequel is no sequel isn't as reliable as relational databases and other types of databases it's very fast it's very scalable but sometimes it can lose information right that's the problem with it right well the thing is until Twitter until Facebook until other things if you're gonna have a database the one thing that you didn't want to lose its information right so if you're doing financial transactions you don't want one financial transaction to simply not happen to just disappear right so if you look into a sequel databases right until the social social networking revolution yeah they were interesting and good but really what we're gonna use them for well thank you the social networking comes about Twitter comes about Facebook comes about all these things come about and then what you need is like oh we are going to have millions of people hammering these databases all at the same time it needs to scale these are scamming again you've got like a billion people over 1.2 billion people on Facebook so you got to scale these things massively and so you start looking at it and if you're looking at tweets right if you're looking at financial transactions you can't lose you can't lose a financial transaction that's a death blow but if you're doing tweets right you know if you have massive scalability a massive speed and every I don't know one out of five hundred tweets disappears because it doesn't get processed properly is that going to be a killer to Twitter no right so it's like oh okay so this is a use for the database system so now we have a database system not as fast that is scalable but every once in a while it loses something but in the social networking world if you lose a thumbs up or you lose a thumbs down or you lose a comment nobody's gonna lose their mind right and so that was real a that that was a real impetus for it for no sequel is this new modern architecture for kind of technology that we're talking about and so that's what I'd argue with the block game means what you have with the blockchain is you have this distributive are you have this distributed architecture you have oh what is it you can't go back and change things immutable that's right you have an immutable ledger so you can't just go back and screw with transit because that's the thing with a lot of databases right you can go in and you can actually get into the database and you can change things after the fact so you have an immutable ledger that's a valuable thing and so there are certain valuable things to the blockchain I would argue using the blockchain for like legal communication I think that makes a lot of sense using the blockchain for some kind of like currency resource transaction I think that makes a lot of sense there's a lot of things that the blockchain makes sense for but a lot of the things that the blockchain is getting pushed for are just almost idiotic again this whole idea of like privacy oh you got to put your information and do the Brocade and then it's gotta be private it's gotta be private all the way until you give it to somebody listen as soon as you give it to somebody else is gonna go into the other database systems and they're all going to talk to each other and it really matter at the end of the day and so that's one of the issues I get into when people talk about the block trade because it's just there they're over selling it with a lot of stuff again you get this nowadays with virtual reality augmented reality with so many technologies nowadays it's not that they're not good technology's not that there's not a there's a purpose to them they're just getting oversell sold to high hell and back and it's just not it's not what that's good for so anyways one of those things to be thinking about one of those things to be thinking about cuz I hear that with privacy privacy privacy and it's just like yeah yeah so so so you're telling me so you're telling me the companies the companies that created super cookies are yeah yeah you're just got they're just gotta be Coppa said they're just gonna be a-okay with you only giving them whatever information they want yeah yeah Facebook yeah Facebook is gonna be a-okay with only only taking the exact information you want to give I just don't think it's gonna work that way I don't think that's gonna work out again for whether you like it or not again in the technology world one of the things I push a lot of people into when they want to go into technology nowadays is I really tell people think about either getting your MBA or your juris doctor your law degree and I do have to say like with the European see part privacy laws that are going doing it to affect now those are controversial that's an argument for a different day but all I want to say is the European privacy laws are far more significant for privacy than blockchain will ever be I mean if you if you leave if you implement laws that force the major players in order to play the game a certain way that will be much more significant than trying to come up with a lot of these technological solutions is at the end of the day a lot of these technological solutions you can just kind of get around it's like you know we're Verizon I use Verizon FiOS and serve Verizon FiOS if you don't change your your DNS settings and your computers or on your on your router then they use their own DNS settings that supply a surprise whenever you miss type something in or whatever else go to their servers so they can collect the information and try to route you using you know whatever advertising people are paying for that way it really really kind of sucks but you know this is the kind of thing that's happening and so just something just some anything about out there the whole privacy thing blockchain is not the end-all be-all of privacy I don't actually think it's actually that good a solution to privacy again certainly that's just my two and a half two and a half click Beatty since doing these videos over here on YouTube clickbait YouTube so people will watch no go maybe I'll go over and take a look what's going on and fail normal fail normal the cruel stuff is going on or talk about airstreams die barrister you guys lose your mind over MacBook Pros well or I would buy a MacBook Pro oh your mind is gonna explode when you learn about air streams you learned about air streams your poor little minds go oh there's a frickin self-destruct the fail normal is where I talk about I think the cooler stuff I go out on some major trips you know again using drones talking about the real world a technology business life as a geek that's what's going on over there so yeah just do what those for advertising just doing this for advertising but anywho I've been talking for about 23 minutes which was probably to log on YouTube can't talk for a long time on YouTube people like things short so with that I'll call it a see you folks over fail normal or back here might do another another se another clickbait vid regardless see you folks later

25 Comments

25 Replies to “Blockchain Privacy Problem”

  1. Keith McLean says:

    You should look into David Chaum's Elixxir Platform

  2. Terrantulla says:

    Eli, you were the guy that helped me learn a lot about what I know about IT today, and got me passionate about it. And for that I'll be forever grateful and indebted to you. But man, you seem so on edge lately! It's like you're upset about something deep inside or like something's eating you alive all the time. I know the world is shit, but just chill out. Take a breather. Don't take stuff too seriously or your mind is gonna explode! Also, if you really hate Youtube (like I do), I would suggest having a look at bit.tube or lbry.io. Of the two I like bit.tube probably a bit more. It needs some work, it's sort of like Youtube in 2012, but it's getting there. Also, it's built on IPFS so it's uncensorable and it's natively monetized. Have a look and let me know what you think. Take care dude! πŸ™‚

  3. Blockchain has a myriad of use cases and one actually being privacy since zk-snarks was introduced in the Monero white paper. Mentioning healthcare recordings on the blockchain is actually a safe alternative to storing in hospital databases for e.g. the unlikely but realization of ransomeware attacks. Important data should be stored on a blockchain using encryption techniques. Being in control of your own data doesn't seem too farfetched in the near future; at least more control than what we have today. I wonder, are you still in the telecom business?

  4. Brugllione says:

    Cryptocurrency is the only real purpose for it, the rest are pretty much shitcoins. Learn about our financial system and you'll realise we need to change things.

  5. Nandi Bear says:

    Hi Eli, Bitcoin is blockchain. There is no blockchain without bitcoin (you can change the name, it's not about the name). They are one in the same. It's about being your own bank, permissionless digital payments (that's most the intrinsic value of it). You're right about databases though. It you need a database, then use a database. A blockchain makes for a VERY slow database and mostly likely you wont be able to secure it unless you essentially turn in back into a database (making it permission based). A blockchain needs to be open source (no hiding code, we need to know exactly what it's programmed to do). Moreover, it must be trustless (in a good sense) and permissionless. The network must also be open to anyone who wants to join (as node, a miner or a witness – depending on POW or POS). A blockchain by itself is not secure. It needs to be secured and those who are securing it (anyone is free to participate, not just a several people appointed by a company) must have an incentive to remain honest.

  6. hassan midas says:

    a good topic to blabla about…thank you ELI

  7. Tutan De says:

    you are a great mentor.

  8. Blockchain can be said to be a protocol than calling it a Database
    '

  9. Hi Eli, is it possible for you to do additional classes about windows servers/office 365, hyper v etc?

    Even if you upload it onto udemy i would happily pay h

  10. Can you make a video about Windows embedded ? and (XPe)

  11. Anybody that understands the blockchain should already be well aware of these concerns, since most cryptocurrencies don't have privacy as their primary goal, the main goals being: ease of transfer, verification and decentralization. There are many coins where privacy IS the primary concern where clever cryptography allows completely untrackable transactions such as ZCash, Monero and Dash (using Dark Send) being just a few examples.

  12. roy Yung says:

    One thing about storing medical records is that the company that houses the data, becomes a business associate of the medical provider and therefore is subject to HIPAA regulations. In addition no medical provider will sign up with a business associate that will allow data to be stored outside of the USA, since the data is not protected by HIPAA regulations. Health and Human Services, or HHS has strict guidelines as to how information should be managed. HHS is responsible for enforcing HIPAA regulations.
    States are providing RHIOs which are Regional Health Information Organizations. These RHIOs will be interconnected so if you see a doctor in a different state, your information is shared from your state. One of the problems facing RHIOs is to uniquely identifying patients, since as of yet there is no unique patient identifier established. This problem is being worked on.

  13. MJ Snosk8er says:

    Audio too low. Thanks for the vid.

  14. A speech therapist could make a case study out of Eli.
    What a change in 8 years of YouTubing, later in life.
    Fascinating.

  15. vesalexiev says:

    It’s called zcash

  16. J.T. says:

    Well, Monero actually does allow for privacy. And there are other coins that have similar features. Bitcoin and Ethereum are about open, transparent ledgers.

  17. Oculus Hut says:

    Would be interested in your thoughts on the Bisq peer to peer trading platform.

  18. This didn't get put into my subscription feed, second time this week that's happened… the other time was a LTT video but this one is missing from the feed too

  19. Danny says:

    Eli can you make a video about GDPR? People just can't understand why it's actually not as beneficial as politicians make it out to be. This would allow me (and any other tech professional) to have a video that can be shared easily instead of just repeating the same explanation over and over

  20. Eli, the only man on YT without a dislike on his video!

  21. Naresh Kumar says:

    (very)^β—‹β—‹ infinite good πŸ‘πŸ‘πŸ‘πŸ‘πŸ‘πŸ€˜πŸ€˜πŸ€˜πŸ‘πŸ‘πŸ‘πŸ‘

  22. Kevin Batts says:

    As always great point Eli.

  23. How much for an ASIC "Me" miner and will that bubble ever collapse?

  24. Eli the blockchain guy. You'll have 2 million subs by the end of the month. lol

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