The rise of large tech companies has been a double-edged sword for the majority of us. On the one hand, it has given us the shiny and powerful technological tools that most of us use and enjoy, such as the iPhone, Spotify, and Gmail. On the other hand, many of those tools, in addition to being dangerously addictive, have forced us to give up control over a resource whose worth many of us didn’t realize until it was too late: our own data.
The arrival of web3, a technological ecosystem based on blockchain technology and widely regarded as the internet’s third evolutionary phase, could potentially reverse that trend, restoring control of data to individuals. The key, and one of the core principles of blockchain technology, is decentralization – that is, a framework controlled equally by a large number of separate nodes in a network, rather than a single, centralized server. If we talk about an experienced web3 development firm, they design and create interactive web3 solutions utilizing blockchain, AI, NFTs, IoT, and cryptography technologies.
The cryptocurrency Crossroads:
Many web3 enthusiasts consider crypto to be the lifeblood of the decentralized future, a financial system untethered from the centralized power of greedy and often irresponsible banks, governments, and corporations. However, contrary to popular belief, cryptocurrency transactions are far from private. “The majority of people think of Bitcoin as a private means of exchange, which is far from the case,” says Adam Ggol, co-founder and CTO of blockchain platform Aleph Zero. “I’d like to argue that it’s far less private than normal bank transactions.” The issue with Bitcoin and many other blockchains is that anyone can track your transactions if they interact with you even once.”
I’m Getting Lost in the Metaverse:
The metaverse, a hazily defined virtual space in which visitors can theoretically work, play, shop, and interact with one another as avatars, raises some privacy concerns. Or, more precisely, the concern stems from virtual reality (VR), a technology that, owing primarily to Meta’s efforts, has come to be perceived by much of the public as roughly synonymous with the metaverse.
Despite its promise to protect data privacy, web3 has a long way to go before that dream is realized.
Web3 has had a difficult year in terms of public relations. The onset of the ‘crypto winter’ in May, as well as the recent collapse of the once-dominant crypto exchange platform FTX, has led many to lose faith in cryptocurrency as a viable alternative to traditional, centralized banking. Then there are Meta’s well-publicized internal conflicts. Though many die-hard web3 enthusiasts would recoil at being lumped in with Meta, the company has – by hook or by crook – become the public face of the metaverse in many ways.
It’s Time to Walk:
That isn’t to say web3 is doomed. The blockchain, like any other major technological innovation, will take time to gain widespread adoption. For the time being, some experts believe that the dark night of the soul that web3 is currently navigating could ultimately be a good thing for the space – a time to reflect, separate the wheat from the chaff, dial back on hype-driven marketing and focus instead on the actual value – in terms of data privacy protection and individual empowerment – that web3 can (theoretically) provide.
Web3: Data Storage and Privacy
Users can regain their privacy and the ability to store data as dApps replace centralized websites. Web3’s user-to-platform interactions are both confidential and anonymous in theory and practice. All of this enables individuals to recognize their self-sovereignty and feel secure about the security of their personal information.
Web3 isn’t quite here yet, but we’re getting closer to a digital world where privacy and ownership are rights, not frills. The challenge now is to ensure the resilience of critical infrastructure. For starters, dApps must be highly functional, capable of onboarding large numbers of users and providing services at scale.
But, thanks to the industry’s many prolific and innovative communities, we’ll be there soon. Web3’s social impact empowers people on a fundamental level. We can eventually establish privacy and ownership as the norm for human-to-human and human-to-machine interactions if we secure privacy and ownership at this level. Web3 is the future that users deserve, and it is here and now.
Finally, web3’s promise to reshape data privacy is dependent on one priceless resource: freedom of choice. “What blockchain… brings to the table is the ability for users to choose whether or not to reveal their data,” explains Antoni Zolciak, cofounder, COO, and CMO at Aleph Zero.