Web3 and data sovereignty
Over the last couple of decades, the world has experienced digitalization at an incredible pace, with almost all aspects of our lives being tied to the internet in one way or another. With this comes more opportunities for user data to be collected by those administering the services. Unfortunately, once collected, that data is not always used ethically. As a result with the increasing digitization, we have also seen an increased movement for data sovereignty policies and the need for users to gain ownership of their data.
In this blog post, we are going to dig a bit more into this topic of data sovereignty, and how web3 can help. For a hilarious yet informative overview of some of the challenges associated with the way data is currently managed, check out this piece on Data Brokers by John Oliver.
What is data sovereignty?
In some context data sovereignty can refer to “the concept that the data an organization collects, stores, and processes is subject to the nation’s laws and general best practices where it is physically located.”
However, for the purpose of this episode, and the accompanying podcast episode, we are referring to data sovereignty in the sense of having individual ownership over one’s data. As the user, you, or your data, is often the “product” that is being sold to third parties. However, in a world of data sovereignty, you have complete ownership over your data, who has access to it, and how they can use it. You go from product to owner.
Why is this important?
Many feel uncomfortable about how their data is used, but feel hopeless to do anything about it, and few it as a necessary evil that comes with the internet. After all, is it really that big of a deal if corporations use my data to send me a few targeted ads?
Well, as we’ve seen from the past, the implications of your data being in the hands of others, can have much more significant impacts than a few targeted ads. For a good example, you need look no further than the case of Cambridge Analytica back in the 2010s, you know, the one where the data of millions of Facebook users was collected without their consent and used to influence the 2016 presidential campaign and the Brexit referendum?
Beyond the more egregious cases like Cambridge Analytica, it is clear that people are worried about how their data is being used by corporations and the government. In fact, one study found that over 80% of Americans felt that they had a lack of control over the data governments and corporations collect, and 79% and 64% are concerned about how corporations and the government use the data they collect respectively.
So, we know there is a problem when it comes to the ways are data is handled, so what is the solution?
Web3 and data sovereignty
It is important to start by saying that web3 doesn’t inherently address this problem – web3 is not a panacea for the problems facing personal data. After all, there are plenty of ways web3 tools can be used to harvest and misuse data. Corporations must be drooling over the many ways they can use user data to shape metaverse experiences, for example. However, if used properly, there are plenty of ways that web3 can usher in a new era of data sovereignty, in which users move from product to owner.
One way that web3 can improve data sovereignty, is by supporting the implementation of new self-sovereign identity models. Self-sovereign identity, in a nutshell, means a user has complete control and autonomy over their identity data, and how it is used. A good outline of self-sovereign identity is provided by the WEF (2021):
In self-sovereign identity, the user has his or her identity information digitally signed by a trusted third party. When the user provides the identity information, he or she also digitally signs the information before providing it to the user of the identity information. The public keys of the user and the third-party organization for verifying the digital signature are recorded in a distributed ledger, and the user of the identity information verifies the provided information using them. In this way, users can control their own identity information without relying on a specific central administrator
Some have already starting putting this idea in to practice, such as micro credit provider Kiva, which has developed a self-sovereign identity protocol for building credit history, and the COVID Credentials Initiative which is making use of self-sovereign identity for a proof of vaccination system. In a nutshell, self-sovereign identity protocols, that enable users to truly have ownership over identification documents, and control who has access to them and when, is made possible by blockchain technology.
Another way that web3 can help improve data sovereignty, is by working to replace web2 tools with open-source, decentralized versions. A good example of this would be Brave Browser, an open source web3 internet browser, that provides an alternative to traditional browsers. The Brave Browser and search have many built in features to prevent websites from gathering your data, including blocking trackers, while also making use of an opt-in, user-first ad system, where users actually get rewarded for watching ads, as opposed to the corporations selling your attention to advertisers.
Another example is Functionland, a company looking to provide a web3 alternative to traditional cloud data storage and web services. Fun fact, I recently spoke with their CEO Keyvan Sadeghi for a podcast episode on data sovereignty. Check it out HERE if you want to learn more about the work they are doing.
Conclusion
Overall, the push for data sovereignty is still in the early stages, as can be seen by the fact that the vast majority of internet users have their personal data harvested and sold every single day. However, in recent years, incredible progress has been made with the launch of alternative web3 services, new regulations in support of privacy and data harvesting, and most importantly, massive growth in the number of individuals who are tired of their data being overused, and who are making the transition to self-sovereignty over their data.
When it comes to web3 data sovereignty, there is so much more to cover, including the role of NFTs, but this is a topic for another day. In the meantime, I recommend you check out our podcast featuring CEO of Functionland HERE.
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