Cryptocurrency investors and frequent web users alike both know the frustrating feeling that stems from the annoying Captcha anti-bot protocols that require users to select specific (albeit sometimes unclear) images in order to verify that you are a real person logging into the site.

Although the process is annoying for web users, it is necessary for sites to implement in order to reduce the number of bots utilizing the site, which can lead to increased risk for security breaches, and, in the case of cryptocurrency exchanges, can lead to unwarranted bot trading that can negatively impact the stability and liquidity of the exchange.

Two new blockchain startups are partnering to eliminate these annoying protocols by using the Ethereum blockchain to prevent bots from logging into accounts. Blockchain startup, Datawallet, and smart contract company, Enigma, have partnered in order to create a new Ethereum based product – called “Bot or Not protocol” – that will utilize Enigma’s "secret contracts protocol" in order to verify the humanity of site users.

The new product has been delayed by a few months due to Datawallet’s platform not being launched yet, but the Bot or Not protocol is currently scheduled to be released in the fourth quarter of this year.

Once launched, Datawallet will allow users to monetize their data stored in what it calls a “self-sovereign wallet,” which will store data from user’s social media, music streaming services, and online search platforms, which is incredibly valuable.

The platform was first launched in February of this year, at which time funding was secured through an ICO, which raised $40 million. The platform will use the tokens issued to investors in order to rapidly and securely transfer user data, utilizing private key pairs to ensure full security.

Enigma also raised $45 million through an ICO last year and will be working with Datawallet in addition to running their current operations, which focus on data privacy through the use of blockchain-based smart contracts.

While speaking about the new anti-bot protocol, Enigma’s co-founder and CPO, Can Kisagun, said:

"Bot or Not is a major step towards preventing ad fraud and Sybil attacks, both of which are important and complex problems plaguing our online world. Decentralized technologies can be an answer for identity but only if data privacy can be maintained. This is where we believe Enigma's protocol can be the difference-maker."