Panama has fallen. Can blockchain still protect the privacy of bosses?

After a massive cache of documents leaked from within Panama-based law firm Mossack Fonseca, which specializes in creating shell companies, implicated several world leaders and triggered a wave of calls for his resignation, will a blockchain-based system do a better job of protecting the privacy of its users?

No matter how many world leaders try to downplay it, it doesn’t change the sheer volume of information leaked in the Panama leak (115,000 documents, covering 214,000 foreign institutions, over 40 years). Although it may have been leaked illegally, the government will still make a difference with the information, which is currently mostly in the public domain. The question caused by such a large-scale leak is - will the blockchain based on the property rights system be more secure in terms of protecting user privacy?

Jerry Cuomo, vice president of blockchain technology at IBM, said that in order to create a trusted and effective technology, the core technology of blockchain must be further adjusted to address people's concerns about security and privacy. He called this "enterprise-ready blockchain."

IBM, at the forefront of the Linux hyperledger project, is committed to advancing blockchain applications. Cryptography experts at IBM Labs have developed an identity management system that includes user transaction privacy (anonymity and unlinkability of transactions). Privacy controls implemented in smart contracts can precisely specify who has access to view. Once these applications are commercialized, we have reason to expect huge advances in secure transactions.

The existence of tax havens and confidential ownership of companies is a reality, whether the rest of the world likes it or not. If law firms like Mossack Fonseca had implemented a blockchain-based security solution, it would be impossible for a disgruntled employee/hacker to leak such detailed user information. Blockchain-based solutions not only improve user security and privacy, but also provide other benefits such as cost savings, improved settlement times and reduced risks of fraud and forgery.