How does encryption work in our blockchain-based marketplace?

At BitBoost we care about privacy. We believe that our users have the right to control and preserve their own personal data, so we do not store any of it. We can never sell or use your personal data for our own purposes. Moreover, we have implemented an encryption system to protect all personal data in our blockchain-based marketplace.

How does encryption work in our blockchain-based marketplace? Encryption works together with smart contracts. Our blockchain-based marketplace utilizes Ethereum smart contracts to list items for sale, to organize the buy and sell process, to hold escrowed funds, and to allow communication between buyers and sellers. Smart contracts enable a transparent and safe trading process. Messages, mandatory to the purchasing process, are stored on the blockchain. Non-mandatory and private communications can be moved to an off-blockchain platform to reduce costs and improve speed. As all data on the Ethereum blockchain are publicly visible, private communication requires encryption.

Our blockchain-based marketplace uses the elliptic curve Curve25519 for private-public keypair generation. On a high- level summary, each Curve25519 user has a 32- byte secret key and a 32-byte public key. Each set of two Curve25519 users has a 32-byte shared secret used to authenticate and encrypt messages between the two users.              

Advanced encryption standard (AES) is used for data encryption, and one-time private keys are generated for the buy session. One-time keys allow the buyer and seller to share their communication with a third party, e.g. the arbiter, without revealing their private keys. Our blockchain-based marketplace shares private keys for both encrypted communication and Ethereum wallet generation. The private key is stored in the user data folder in JSON format, encrypted with the user’s password.

BitBoost does not use encryption to promote trade in illegal items or to foster a scam ecosystem, but does reflect lessons learned from the mass violations of privacy that have occurred in recent years. A decentralized, blockchain-based system is less prone to theft of personal information. But it needs strong cryptography to protect that data since it is exposed on the public blockchain.

Moreover, privacy through encryption does not mean anonymity. Users can exchange their personal information as needed through the app. This will be needed for delivery and invoicing purposes, as in any e-commerce service. But, unlike other e-commerce services, our blockchain-based marketplace does not store this data. It will be safely encrypted into the Ethereum blockchain. We will not control trading processes between buyers and sellers. We will just facilitate it, in a decentralized and secure way, through the blockchain. Encryption is an important means to achieve this goal. This is how encryption work in our blockchain-based marketplace!

(If you think the people you know would find this useful, please share it with them – We’d really appreciate it!)