How will Web 3.0 impact Data Privacy?
Nothing on the internet today is private, users vaguely understand how various websites collect, store and use their information, leading to unexpected data privacy breaches. Today, just a handful of companies like Google and Meta control the web and data on the web. We have all consented to give them our data, knowingly or unknowingly because it’s more convenient and gives us access to various apps and games.
This data is eventually used in many ways without user knowledge and permission while these social and media companies and data brokers make untold millions of Dollars. Massive, centralized data stores have led to countless data breaches. Example: Healthcare provider Novant issues data breach warning after site tracking pixels sent patients’ information to Meta servers
(source: https://portswigger.net/daily-swig/healthcare-provider- novant-issues-data-breach-warning-after-site-tracking-pixels-sent-patients-information-to-meta-servers). A single breach can impact millions of user’s data. As a result, legislation such as GDPR and CCPA have added additional layers of protection for user data. However, they are falling short in terms of protecting user data. In light of the detrimental outcomes, data security and privacy have become pivotal issue and concern.
Web 3.0 could bring a new age of Internet privacy. If the world can implement it effectively, it can revolutionize internet privacy and security; while in the early stages, it holds tremendous potential. The main goal of Web 3.0 is to put power back into the hands of internet users. It will let users create and use tools instead of giving large corporations their respective data in exchange for use of online services. Web 3.0 uses technologies like blockchain to decentralize the web, removing its dependence on third parties.
The most notable privacy upgrade with Web 3.0 is removing the centralized third parties intermediaries. Users will interact directly instead of relying on companies like Meta to facilitate the exchange. Blockchains, which don’t belong to any one party, ensure that communication remains decentralized.
Blockchains also let users verify their identities themselves, minimizing how many people have access to sensitive information. Insider threats have now become one of the most common vulnerabilities in today’s centralized data centers. As the risk has increased considerably, a considerable privacy upgrade is necessitated.
With increased privacy, security, and opportunities to monetize their data Web 3.0 will provide more options for data and content creators leading to a more vibrant creator economy. Instead of creating content for free with the hopes of gradually growing an audience and one day being able to monetize it, creators will be able to monetize and build an audience upfront through tokens — and then use that money to produce their content and grow their business.
As a result, Web 3.0 vastly improves the Web 2.0 experience. Instead of starting with creating free content and then develop the followers and the monetization, Web 3.0 creators can begin by monetizing through the creation of a token (NFT or fungible) and then use the initial funding and subscribers from the token sale to launch their content or creative works. Web 3.0, in contrast to Web 2.0, empowers an existence in which Users can own and monetize their creations.
How does Web 3.0 guarantee users a future where data privacy is prioritized?
1) Blockchain technology is a decentralized sort of technology that prevents any one person or organization from having complete control over an ecosystem. Instead, control can be kept by everyone acting as a group. Blockchain is a database that retains records while allegorically maintaining security and transparency, despite the absence of a single governing body.
2)Great blockchain frameworks have given careful thought to the incentives to make sure that all actors from those who run the network and keep the ledger up to date to the companies that develop on top of the blockchain operate in an honest and open manner. When they don’t, those actors may be penalized based on the blockchain’s laws or by popular vote.
3) Users should determine when, how, and for how long to share their data if blockchain is implemented effectively. Additionally, users need to be aware of its usage. The user should be aware of the companies to which their data has been sold if a corporation does so. Consumers should be aware if Google searches are utilized to forecast and display specific ads to users.
4) A user should ideally be able to withdraw access if they are unhappy with how their data is being used or decide they no longer want to share their data with a particular business.
5) Due to many safeguards, blockchain is currently designed to be computationally hard to hack. The widespread, global adoption of Bitcoin demonstrates that blockchain technology is highly resistant to hacking. This is fantastic news because according to statistics gathered by ITRC and the US Department of Health and Human Services in the first half of 2021, 98.2 million people were affected by the ten worst data breaches. Blockchain technology provides more security as the battle against hackers intensifies.
While widespread use of blockchain technologies is still years away, there are a few methods for companies to get ready and set up for a privacy-driven future in order to survive and grow.
1) Be truthful and open about how you use user data. The user is more likely to trust a company if it gives more information.
2) When user data is required to run the business, be open with them about the value exchange. Users are more inclined to allow access to their data if firms can clearly explain how they add value. Many companies do offer benefits to users who share their data. This makes it possible to build a more reliable rapport with users.
3) Examine corporate procedures to safeguard user data privacy.
4) Be open-minded about emerging technologies like blockchain, which could eventually shape how the internet and consumer privacy are used in the future. Although widespread adoption of Web 3.0 technologies that support stringent privacy is probably several years away, businesses can make the move with little interruption to their operations by keeping an open mind.
For more you can read our blog Tips and tricks to secure your data
Conclusion
Web 3.0 is on the horizon as a logical extension of the internet and to address concerns about user data privacy and data breaches, and blockchain is most likely to be the core technology that drives its development at scale.