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If you’re worried about how private your data is online, you’re not alone.
According to a MAGNA/Ketch survey, only 5% of people have no concerns about how companies are gathering and using their personal data. Thankfully, as the online world transitions to Web3, a host of solutions are emerging that are putting users back in control of their data and redefining how that data should be handled.
Web3 puts users in the driving seat when it comes to their data. It goes beyond just securing data and instead redefines how that data should be handled. Web3 sets new standards for transparency and privacy thanks to the use of blockchain combined with other Privacy-Enhancing Technologies (PETs).
Whether it’s enhancing privacy, boosting data encryption and protection, or reinventing data ownership, Web3 is transforming the concept of data privacy.
Traditionally, when you wanted to protect something, you put it in one place and built the biggest wall you could around it. Whether it was a medieval treasure, a priceless work of art, or some cold hard cash, centralizing your valuables and securing one location was believed to be the best approach to keeping something safe.
However, this approach also opens the owner of the treasure up to some risk. When everything is stored and secured in one place, there’s just one place for malicious actors to focus their efforts. After all, as the old joke goes, the reason we robbed the bank is because it is where the money was.
No advantage exists to keeping everything in one place with data. On the contrary, when decentralized, there's no single source of failure for a bad actor to exploit the data.
Decentralized systems are more secure and, thanks to blockchain technologies, also more trustworthy and more transparent than traditional centralized alternatives. Blockchains, while immutable and public, don’t expose anyone’s private information to the world as sensitive data can be protected off-chain using PETs.
In short, decentralization enhances Web3 data privacy and trust while setting new standards for transparency, too.
Blockchain guarantees transparency in the recording and tracking of transactions or changes on the ledger. It creates an immutable record of every transaction, ensuring that each change, no matter how minor, is permanently and publicly accessible.
These records are stored in a way that makes tampering extremely difficult, establishing blockchain as a reliable public ledger that retains a full history in perpetuity.
However, while this transparency is a strength, it does not inherently extend to the actual data, which often needs to be kept private. To protect sensitive data, it is typically encrypted or stored off-chain, limiting public access to the data itself.
What remains transparent on the blockchain is the governance layer—the rules and permissions regarding data handling. This transparency in governance is a major benefit compared to traditional centralized systems. It lets users check the integrity of data management practices, even if the data itself stays private.
Web3 technologies offer a promising solution for users who want to keep their data private while still benefiting from its value. The integration of blockchain technology with off-chain solutions such as confidential computing and Trusted Execution Environments (TEEs) represents a significant advancement in data privacy and security.
As mentioned earlier, blockchain is renowned for its ability to offer transparent and tamper-resistant data governance. However, while it excels in providing a secure framework for data integrity, it often faces challenges when it comes to maintaining the confidentiality of sensitive information. This is where off-chain solutions come into play.
Confidential computing is a group of technologies that keep data safe while it is being used. This means that even when the data is processed, it stays encrypted. Unauthorized users cannot access it.
It is crucial for applications that handle sensitive information, such as financial transactions, personal health records, or proprietary business data. Trusted Execution Environments (TEEs) are a specific implementation of confidential computing.
TEEs create isolated environments within a processor, where data can be processed securely and confidentially. This means that even if the main operating system or other applications are compromised, the data within the TEE remains protected.
The strengths of blockchain and off-chain solutions help users create a strong data governance framework. This latter focuses on both transparency and privacy.
For instance, hardware-based encryption ensures that data remains unreadable to any unauthorized party, even during processing. This means that sensitive and personally identifiable information, such as financial data or health records can be safeguarded while still benefiting from blockchain’s transparent governance and security.
The synergy between blockchain technology and off-chain solutions like confidential computing and TEEs enables users to maintain the privacy of their data even during active use.
These technologies give users more control over their data privacy in Web3. They also provide developers with tools to improve data security and build user trust. Together, they create a more secure, privacy-conscious user experience without sacrificing the transparency that defines Web3
Normally if you share your data with someone, you have little control over how they use it. You get to make one decision – share or don’t share – and what comes next is down to the entity you share the data with.
With blockchain, though, you can set rules about who can access my data and agreements that define the reasons they can access that data.
These rules and agreements, known as ‘smart contracts’, are entirely transparent and self-enforcing, and this gives you ultimate ownership and power over your data in a way that a simple share/don’t share binary never will.
There was a time when individuals online were simply users. Somewhere along the way, though, those users shifted to become products, considered not a lot more than data points for an advertising machine. With Web3, a new shift is underway, from products to owners.
Unlike the web of today where companies own and control everything, Web3 empowers individuals to control and protect their own data. The data that serves as a vital resource for Fortune 500 companies is not just a privilege reserved for large corporations.
It is now an invaluable asset that every individual has the potential to own, protect, and use to their advantage.
Your data has value. Not an abstract, theoretical value but a real cash value. With Web3 data privacy technologies it is possible to efficiently monetize your data and overcome the inflexible monetization frameworks of today’s web.
With Web3 you can earn money by sharing the computing resources you already own privately and securely. Developers can rent out apps and individuals can confidently earn from their data, even getting paid for something as straightforward as receiving an email.
Web3 is redefining the relationship between individuals and their data.
In a Web3 world, ownership of data reverts to the user. They can take back control of their data using the blockchain and smart contracts. Users can set the governance rules for their data in complete transparency and they can monetize their data using Web3 data privacy tools and PETs.
At iExec, we create Web3 solutions that enhance data privacy, enabling users to reclaim data ownership. We create the tools that allow you to tokenize data and set governance rules, giving you control over its protection and use.
iExec Privacy Pass allows you to earn RLC tokens by receiving marketing emails while keeping your addresses confidential. Through Confidential Computing, Privacy Pass encrypts and secures email addresses, ensuring they are never exposed. This demonstrates how DeCC empowers users to safeguard their data, even in incentive programs.
Your data holds your power.
Everyone benefits from a web where data privacy is paramount, transparency is assured, and monetization is easy. Web3 data privacy tools and technologies are a reality today, ready to be adopted by builders and users like you who are ready to take control of their own data.
