Facebook's announcement to get into the banking business is putting a new spotlight on blockchain technology. Facebook plans to launch a blockchain-based financial network using Libra, which is being touted as Facebook's digital currency.
Purdue University researchers have developed X-Blockchain, a crypto-powered ledger technology that allows users to perform transactions in a confidential manner. Users share what is called shredded data—meaning the confidential information has been wiped out—instead of the actual data itself.
Purdue researchers have developed a platform technology that enables cross-blockchain transactions in a marketplace while hiding the user's sensitive data. The technology could be downloaded as an app for a phone or used in other ways.
"We have created a way for users to barter their goods, like rewards points or cryptocurrencies, with each other without compromising or sharing confidential data," said Mohammad Rahman, an associate professor at Purdue's Krannert School of Management, who leads the research team.
"This technology enables two people to confidentially exchange rewards points from perhaps a coffee chain for airline rewards points at a rate that both find acceptable and this is not disclosed to any third party, including our platform," said Siva Chaduvula, a postdoctoral student and the key driver of this project.
Rahman said that this technology also reduces transaction costs and hassles because it takes third parties out of the equation. Two users can deal directly with each other, without sharing sensitive transactional data.
"We created a system to allow transactions between parties without having to give out sensitive transactional data," Rahman said. "Instead, our computer application technology uses algorithms to code and process data without the need to share specific private data points."
Provided by Purdue University