Is it possible to store private data on the blockchain?

I have recently been introduced to the many use-cases for blockchain technology. One of the examples that Russ Fustino mentioned was the storage of sensor data for the automotive industry.

If all data is publicly available, I foresee many instances where the manufacturer may not want this sensor data to be accessible without authorization. Is there a way to securely encrypt this data or store privately/ externally?

More generally speaking, should personal data (emails, names, etc) remain off of the blockchain all together?

With the exception of data storage blockchains ( such as ipfs ), I would not encourage you to store your data on chain. Instead, use the block chain to do what it was meant to do - proofs & synchronization. Store the hash of the data along with a url for the actual data on chain.


Would it still be practical to store the private data off-chain while also using Algorand to record the exchange of value? For instance, once a transaction is finalized, the private data could be stored to a centralized database. The transaction ID and public addresses could be used as a reference to the private data (such as a confidential report) in the centralized database.

At this point, could it be argued that an application like isn’t suited for a blockchain use-case? It sure seems like there are advantages to a hybrid application like this, but I am also quite new to the space and may be a bit naive.


Yes, that would work. Blockchains are great for synchronization of resources ( and/or assets ) across organizations and individuals with conflicting interests.

one caveat - I would store the private data on the centralized database before placing the transaction on the block chain. The rationale is that once it’s on the blockchain, you can be sure that the corresponding data entry is already on the centralized database. The reason is that information can be deleted from a database, but not so much from a blockchain.

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Thanks for your input! I really appreciate it. You greatly helped me visualize the possibilities of using Algorand for my next project