![\"Seven](\"/img/uploads/orchid-ceo-dr-steven-waterhouse-speaks-at-ethcc-2021-img1.png\")
As blockchain and crypto have continued to gain attention and popularity over the past year, non-fungible tokens, or NFTs, have surged into the spotlight. The first half of 2021 saw tokenized art, video clips, and various esoterica sold for astronomical prices amid frenzied interest. And although the hype has died down for the moment, a look at the technology behind NFTs shows that this is only the tip of the iceberg. These blockchain assets are likely to emerge as an important pillar of the new economy -- with important implications for privacy.
\nTo understand all that NFTs can do, it's important to explore what they are and how they work -- and how they can be applied to much more than art and pop-culture souvenirs.
\nWhat are NFTs and how do they work?
\nNon-fungible tokens are unique digital assets that can be created and traded on blockchain networks. Unlike fungible cryptocurrencies, they are not interchangeable with one another. In other words, 1 ETH is 1 ETH, but no two NFTs are the same.
\nThis uniqueness has created digital scarcity in a world of \"Internet plenty.\" Many artists whose work has been duplicated online without permission have used NFTs to create digital \"original editions.\" Other kinds of NFTs can be purchased and traded in secondary markets. And as non-fungible tokens continue to become more popular, innovators continue to identify potential use cases for them far beyond the art world.
\nBecause NFTs are unique, they can represent tradeable, blockchain-based ownership rights to specific assets. They can act as digital \"certificates of ownership\" for real estate, fine art, classic cars -- the list is almost endless. NFTs are also increasingly used to represent ownership of new kinds of digital assets: unique, virtual objects in video games and other types of virtual worlds.
\nBut the potential use cases for NFTs extend into more complex use cases too. Ultimately, ownership of any asset can be boiled down to a series of rights: the right to access, the right to control, to use, consume, or even destroy. Each of these rights can be minted and traded as an NFT.
\nFurther, features like token redeemability expand NFT use cases into the so-called \"gig economy\". For example, tokens could be minted to grant short-term access to rental properties and shared cars. They can also support secure transactions in retail markets.
\nTokenizing ownership rights isn't about \"digitizing for the sake of digitizing.\" NFTs stand to make markets more efficient, secure, and transparent; they can also enable secure identity in the online world. Together, these two forces can -- if properly implemented -- directly support the realization of a privacy-focused Internet and decentralized digital economy.
\nNFTs reduce friction & privacy risks in financial markets
\nNFTs have the potential to become the basis of many different kinds of essential transactions. Real estate is one example: the terms of a contract could be set so that the token representing the real estate would only be transferred after the buyer has deposited the required amount of funds.
\nAs the example shows, an important advantage of NFTs is their ability to reduce friction in markets, particularly those that traditionally suffer from bureaucratic red tape. This is because transactions on blockchain networks do not need to be cleared by intermediaries. In addition to reducing the amount of time and money involved, this lack of middlemen also reduces risks to privacy.
\nThe role of clearinghouses, buying agents, retailers, wholesalers, and other intermediaries was originally to guide commercial and financial markets and to prevent mishaps. However, each of these intermediaries introduces a potential point of failure in the transaction process. Any centralized institution can be compromised. Therefore, transactions settled through an intermediary are vulnerable to hacks, system errors, and other possible problems.
\nNot only are intermediaries disruptive to the transaction process -- they also put sensitive information at risk. In addition to large amounts of money and other assets, intermediaries handle high volumes of personal financial and KYC information.
\nMany companies are required by law to collect and store users' personal data to verify it. Users must hand over their names and phone numbers, as well as their home and email addresses. They are also frequently required to share images of passports or other forms of photo ID.
\nThe need for this kind of \"piecemeal\" identity verification can be found across the Internet. People must manually enter our personal information, bit by bit, into countless web forms. Not only is this process tedious -- it also creates unnecessary privacy risks. In addition to being stored on centralized servers, personal data is vulnerable to spyware and phishing attempts during the process of sharing it.
\nNFTs have important implications for secure, private identity online
\nSome centralized Internet services have attempted to reduce the risk and inconvenience of identity verification by offering centralized authentication services. For example, Google and Facebook offer their users the ability to log in to thousands of websites and applications using their accounts (e.g., \"Sign in with Google\").
\nThese authentication mechanisms may simplify the process of identity verification -- and, in a sense, offer some level of privacy protection to users. However, this approach underlines the fundamental flaw in how centralized systems interact with personal data: users don't truly own their identity. As long as this is the case, true online privacy will not be possible.
\nBy contrast, NFTs do not rely on centralized intermediaries to verify and store sensitive data. Instead, transactions can be made directly between buyer and seller using smart contracts. And the security of smart contract-based transactions can be further enhanced with the introduction of another kind of token: NFTs representing secure, private, and user-owned digital identity.
\nNFT-based digital identity can strengthen online privacy by reducing the number of instances where personal information is directly shared with third parties. Using this technology, it is possible to create identity mechanisms that verify and collect necessary data in a decentralized manner -- without ever sharing it directly with counterparties. Effectively, NFTs can make it possible to verify that a person or entity meets certain criteria without actually sharing specific information that could be vulnerable to being compromised.
\nCan NFTs help build the \"Privacy Economy\"?
\nNFT-based identity could be used to tackle both data ownership and quick verification across the web. Instead of using centralized services like Google as the \"keys\" to identity across the Internet, personal data can be stored inside non-fungible tokens that interact directly with smart contracts. With the permission of the user, the smart contract could verify necessary information without ever exposing it to a third party. And because smart contracts are transparent, it would be extremely difficult to design a hidden \"back door\" that hackers could exploit to steal or spy on information.
\nThe concept of connecting private, NFT-based identity with ownership rights on a macro level offers tantalizing possibilities: people could efficiently and transparently trade ownership of assets without compromising their privacy. This can also be applied on a micro level. If tokenized rights can be used to make goods and services in the gig economy more efficient, tokenized identity can also be used to make these markets more private and secure.
\nUsing NFT-based identity, consumers could securely pay for goods and verify personal information without directly sharing it with centralized service providers. NFT identity could make renting a car, reserving a hotel room, or booking an Uber into \"trustless\" processes. Everyday retail transactions could be deconstructed using NFTs: consumers could purchase the NFT-based ownership rights to the goods and services they need, and use tokenized identity to share relevant information with service providers -- without compromising their privacy.
\nThe prospect of NFT-based identity and ownership rights raises the possibility of building a truly decentralized, secure, and private economy. Still, in addition to the potential to reshape the way assets are traded and identities are managed, it is important to consider potential risks and challenges in the ways that NFTs can impact privacy rights online. Specifically, NFTs have important implications when it comes to anonymity, pseudonymity, and the \"right to be forgotten.\"
\nNFTs, pseudonymity, and anonymity
\nThe European Union's General Data Protection Regulation (GDPR) describes the right to be forgotten this way: \"The data subject shall have the right to obtain from the controller the erasure of personal data concerning him or her without undue delay and the controller shall have the obligation to erase personal data without undue delay.\" In other words, service providers must not store personal data online any longer than is absolutely necessary.
\nThe immutable nature of blockchain technology presents a challenge to this imperative, since data that is written to a blockchain cannot be removed or changed. Therefore, when an NFT transaction takes place in today's market environment, public keys and transaction details are permanently, and publicly, recorded.
\nThe immutability of blockchains applies to NFT transactions as well, and reflects a broader truth about the way blockchains like Ethereum are designed. While they can be a powerful tool for privacy, transparency, and autonomy, since they are public ledgers, they are not anonymous. Ethereum, for example, records all transactions on a record that is accessible to anyone, and makes the public key associated with the wallet making any transaction visible. While this pseudonymity doesn't explicitly link transactions to real-world identities, it makes enough information public that it could conceivably be possible to identify the person behind a series of actions on the network.
\nIn an economy based around NFTs, it is conceivable that millions of transactions, big and small, could be immutably, pseudonymously recorded on a public ledger in this way. Renting a car, renovating a house -- even buying clothing -- could all take the form of a transaction on the public ledger. In this scenario, additional steps would be needed to ensure our economic activity, and our identities, remained truly private.
\nFortunately, the technology to achieve privacy in a world of NFTs already exists. Orchid's design takes into account the public nature of the Ethereum blockchain on which the network is built, and introduces novel concepts to maintain a high level of privacy. Orchid's layer-2 scaling solution, known as probabilistic nanopayments, allows payment to be made in a random way that still appropriately compensates those selling bandwidth on the network. Because only these random-seeming payments are recorded on-chain, the true nature of user activity is obfuscated and privacy is strengthened.
\nBy combining the innovative capabilities of NFTs with strong privacy solutions like nanopayments, it is possible to design a new, smart-contract based economy that prioritizes efficiency, access, transparency, and privacy -- encoding these values directly into the processes, tools, and assets that underlie the financial system. And while NFTs remain a new technology, Orchid is already working to explore and demonstrate how they can help further the cause of digital privacy.
\nNFTs and Orchid
\nRecognizing the importance that NFTs could have for the future of online privacy, digital market efficiency, and Internet culture, Orchid is actively engaging NFTs and their creators. The first Priv8 Virtual Privacy Summit in March 2021 included an NFT drop with custom art by our own Chad Soren Harper.
\nNFTs can help drive the growth of a privacy-centered Internet. A privacy economy built on NFT-based identity and tokenized ownership rights aligns with Orchid's vision of a privacy-centered Internet. These assets can be a meaningful part of the infrastructure that will support decentralized identities and economies, leading to stronger privacy and a freer Internet for all.
\nOrchid is working hard to restore the Internet as a place of freedom and exploration. Our decentralized, blockchain-powered VPN marketplace helps people around the world reclaim their right to free, open, and private Internet exploration.
\nPrivacy is Orchid's mission. NFT users and creators can use Orchid to create strong privacy conditions for minting and trading tokens. Orchid is highly accessible and easy to use; people can purchase bandwidth using nothing more than an ordinary credit card. The service is pay-as-you-go, so users are only charged for the bandwidth they use. And now, it only costs $1 to get started.
\nDownload Orchid today to start exploring the Internet freely.
7月19日、Orchid の共同創業者兼CEOであるスティーブン・ウォーターハウス博士は、イーサリアムの技術とコミュニティに関するヨーロッパ最大の年次カンファレンスであるETHccに登壇した。ウォーターハウス博士のスピーチでは、エンドツーエンドの暗号化と分散化が、オンライン・プライバシーを守り、強化する上で果たす重要な役割について述べた。
\n
グローバル社会において、暗号化は「金融や通信のプライバシーを守るために必要不可欠なものになっています」とウォーターハウス博士は指摘した。特にエンド・ツー・エンドの暗号化では、送信者と受信者だけが情報を見ることができ、転送中のデータを扱う中央のサーバーには情報が見えない。例えば、WhatsApp、Venmo、Telegram、Apple、Paypalなどのサービスプロバイダーは、それぞれのサービスに何らかの暗号化技術を採用している。
\n暗号化が普及するにつれ、規制当局から注目されるようになった
\nしかし、暗号化が普及するにつれ、世界中の政府が注目するようになった。
\n実際、多くの政府が暗号化、「具体的にはエンドツーエンドの暗号化を弱体化させようとしています」とウォーターハウス博士は説明する。 民主主義国では、公共の安全を名目に、暗号化対策が行われている。「犯罪対策を理由に、当局が情報を解読できるような \"バックドア \"を企業に提供さています。」
\n「このようなバックドアが存在すれば、暗号化は著しく弱体化します。鍵を盗むことができれば誰でも暗号化されたデータへのアクセスが可能になるからです」とウォーターハウス博士は述べている。「もし政府がバックドアを作ったら、政府が安全だということをどうやって確認できるのだろうか？どんな中央集権的な組織でもハッキングされる可能性があります。」
\n弱体化した暗号化は、プライバシーの権利に対する本質的な脅威であることが証明されており、すでに悲惨な結果を招いている。憂慮すべき傾向として、一部の政府機関は軍用のスパイウェアを使用してジャーナリスト、弁護士、人権活動家を標的にしている。
\nウォーターハウス博士は、「『すべての人を常時監視すれば、すべての犯罪を永遠に解決できる』という考え方には、深い欠陥があります」と述べた。
\nプライバシーの権利を守る
\n暗号化への脅威が顕著になるにつれ、活動家たちは基本的人権としてのプライバシーを守るための手段を講じてきた。プライバシーの権利において暗号化が重要な役割を果たすことを認識し、真の暗号化を維持するよう政府に働きかけるために組織したグループも存在する。
\nエンド・ツー・エンドの暗号化を守るための戦いが技術的にも政治的にも続く中で、ウォーターハウス博士は、他のプライバシー重視の技術が注目を集めるだろうと指摘している。「私たちは、プライバシーという考え方は、未来をどのように構築するかという基本的なことだと考えています。これは、パンデミック後の時代に特に言えることであり、私たちが経験したこの世界的な危機は、将来にわたってプライバシーに影響を与える可能性があります。だからこそ、プライバシーの権利を守ることがかつてないほど重要になっています。」
\nウォーターハウス博士は、「暗号化ほど話題にならないかもしれないが、この取り組みには分散化が大きな役割を果たす」と述べている。\"分散化 \"とは、許可のない方法で物事を行うことだ。中間管理者やゲートキーパーのいない複数のノードにプロセスを分散させることで、単一障害点（Single Point of Failure）のリスクを排除することができる。この技術は、多くのユースケースに応用されている。最も一般的な分散型システムは、金融取引をサポートするものだ。
\nOrchidは、分散化の構造的な安全性と暗号化の力を組み合わせたもの
\n分散化は、プライバシーに関するパーミッションレスシステムの構築にも利用されている。この意味するところは非常に大きい。非中央集権的な方法で情報を保存する場合、その情報をコントロールするのは自分だけであり、確立された当局へのアクセスや許可は必要ない。
\n![\"Seven](\"/img/uploads/orchid-ceo-dr-steven-waterhouse-speaks-at-ethcc-2021-img2.png\")
ウォーターハウス博士は、OrchidのブロックチェーンベースのVPNサービスが、許可のない分散型システムのセキュリティと、プライバシーに対する基本的な権利をどのように組み合わせているかを説明した。Orchidは、世界の主要なVPNプロバイダーのサービスをまとめた分散型のプライバシーマーケットプレイス。その分散型モデルは、分散型ネットワーク上のプロバイダーネットワークにインセンティブを与え、「ユーザーがが誰なのか、（オンライン上で）どこに行くのかを、誰にも知られないようにすることを可能にします。」
\nOrchidは、非常にアクセスしやすく、簡単に使えるように作られている。エコシステム全体は、OrchidのEthereumベースのデジタル資産であるOXTによって支えられいて、ユーザーは通常のクレジットカードだけで帯域幅を購入することができる。また、このサービスは従量制なので、ユーザーは使用した分の帯域だけが請求される。今なら、たったの1ドルで始められる。
\n「Orchidは、デジタル・プライバシーの問題を、オープンで分散的な方法で解決することに特化しています。プライバシーはOrchidの単なる機能ではありません。Orchidの製品はプライバシーなのです。」
\nETHccでのSevenの講演内容はこちら。
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