Web3’s responsibility is to advance data privacy

In the United States, 92% of people said they are concerned about their privacy when using the internet, underscoring how recent massive data breaches and narratives around Big Tech’s data monetization have eroded the trust of Internet users. This situation has been particularly accentuated by the rise of opaque artificial intelligence systems and the evolution of socio-political landscapes.

Regulatory gaps

Although the European Union’s 2018 General Data Protection Regulation set a benchmark as the first comprehensive legal act to strengthen the privacy rights of internet users, it is not without its flaws.

GDPR and subsequent regulatory frameworks have been largely ineffective in enforcing and holding big tech companies, particularly Google and Meta, accountable for collecting and selling user data. Reportedly, complaints about potential GDPR violations have taken years, sometimes more than four, to resolve. The delays stem from complex procedures involving multiple agencies and countries handling complaints against specific companies, creating significant backlogs and weakening the law’s ability to apply and enforce its mandate.

In the United States, the lack of federal data protection legislation has led many states to take matters into their own hands. The disparate regulatory reality of the United States can create more harm than good, as variations on specific topics create endless compliance complexities for businesses operating in many states.

Users then benefit from different degrees of data protection depending on their location at any given time. Additionally, for small and medium-sized businesses, developing individual compliance programs for each state’s regulators increases costs that limit their ability to compete with Big Tech and other large companies.

Meanwhile, tech giants have mounted intense lobbying efforts, arguing that any legislation with teeth would undermine innovation. While this is an interesting discussion, companies whose business models rely heavily on data-driven advertising revenue do not want increased protection of consumer data.

Despite increased awareness of the value and vulnerability of personal data privacy, centralized entities, in the form of Big Tech conglomerates and governments, exert powerful influence over our users’ data. Regulatory protections are generally welcome, but the lack of transparency between big tech’s intentions and those of governments won’t repair the distrust many have toward both.

The increased role of Web3

This is precisely where Web3’s decentralized infrastructure can bypass centralized entities, whose interests may not align with those of most users, to provide a higher level of data protection.

Blockchain – and Web3 in general – has seen countless iterations and use cases of its technology, designed to attempt to create wealth through gaming, crypto schemes, or other means. However, many projects and developers miss or choose to ignore the potential they have in protecting user data.

Thanks to blockchain’s inherent encryption technology and immutable ledger, some Web3-based privacy projects are staking their claim as an alternative to the current Web2 system that dominates online interactions to profit from advertising revenue. One such example is tomi, a DAO-governed project that leverages web3’s data preservation strengths to create a decentralized, privacy-focused “alternative internet.”

Tomi’s modus operandi is to uphold security, data privacy and freedom of expression throughout its operations and product offering. This includes offering services that materially advance its mission, including a VPN, storage and private messaging service allowing its users to protect their browsing and communications by leveraging web3’s security capability. of data confidentiality. Since the project is community-governed and operates on a unified model to retain the familiarity and UX of web2, Tomi’s goal is to make decentralized technology as intuitive and accessible as possible.

The reality is that even if regular users want to take more steps to keep their data private, they are unlikely to take those steps when faced with an inconvenience. This simple fact creates an obstacle that many Web3 infrastructure projects don’t feel comfortable trying to overcome.

So what’s the takeaway here? On the one hand, Web3 projects need to take themselves more seriously as champions of privacy and data protection in a cratering global regulatory landscape. By offering alternatives to those who worry about both big tech and And Due to excessive regulation, developers have a strong and compelling use case that won’t die out in a market downturn. However, preserving privacy cannot come at the expense of UX, and this must remain at the forefront if projects ever want a significant user base to move to Web3.