Beyond encryption: The zero-knowledge revolution for personal data

Organizations and infrastructures critical for maintaining the fabric of society have consistently failed to protect against data breaches, resulting in privacy leaks and operational issues that have amounted to $4.45M in financial losses. Zero-knowledge encryption provides a framework where compromises to the security of the organization entrusted with sensitive user data does not result in its exposure. This is achieved by localizing encryption and decryption to the user’s device which effectively means that the organization has no access to any decipherable information. This infrastructure would be especially useful in the context of patient information, as in 2023, the United States suffered from an average of two health data hacks of at least 500 records daily. Zero-knowledge systems also reduce the liability and possible reputational damage of the organization, as even if a breach occurred, the user’s sensitive data would remain irretrievable to the hackers without the user present to decrypt the data. Furthermore, zero-knowledge encryption inherently minimizes data processing and storage which enables it to more easily meet the benchmarks set by regulatory authorities such as Health Insurance Portability and Accountability Act (HIPAA) and the Anti-Money Laundering Directive (AMLD). With modern advances in cloud technology, zero-knowledge frameworks can be implemented without technically challenging implementations to the user’s device. In summary, zero-knowledge encryption offers a highly secure and user-centric security system for organizations that handle sensitive data, reducing liability and ensuring compliance with data protection regulations.