What Are the Privacy Concerns When Sharing Derivatives Trade Data on a Consortium Blockchain?

The primary privacy concern when sharing derivatives trade data on a consortium blockchain is the exposure of sensitive trading strategies and positions to other members. While all participants are trusted, they may still be competitors.

Revealing this information could compromise a firm's competitive edge. To address this, privacy-enhancing technologies like zero-knowledge proofs and private channels can be used to share data on a need-to-know basis, allowing for verification without revealing the underlying sensitive details to the entire consortium.