Personal information protection war against centralized systems and new technologies

by
Victoria d’Este

Posted: January 10, 2025 7:41 AM Updated: December 30, 2024 6:46 AM

by well

Correction and fact check date: January 10, 2025, 7:41 AM

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The rapid digitalization of the modern world has its advantages and disadvantages. The growing threat posed by centralized data systems frequently turning into tools of abuse for corporate and government actors is one of the most pressing concerns. The issue was brought to light by David Holtzman, a former military intelligence officer and Naoris’ chief strategy officer. He highlighted how centralized systems lead to weaknesses that threaten privacy.

Centralized Systems: A Framework at Risk

A single point of control is the fundamental building block of a centralized system. This strategy makes it easier to access and manage, but it also leaves you vulnerable to abuse by someone else. “The whole problem with centralized systems is that you have a center,” says Holtzman. This makes centralized systems attractive targets for malicious actors. These vulnerabilities are further exacerbated by advances in artificial intelligence and quantum computing. AI’s ability to process and analyze massive amounts of data at previously unprecedented speeds could enhance surveillance capabilities. Meanwhile, quantum computers pose a risk to traditional encryption by exposing personal data.

Many sectors, including government, healthcare, and finance, use centralized data systems. Because these systems frequently process and preserve sensitive data, they are subject to attacks by hackers, authoritarian regimes, and even corporations. When power over these systems is concentrated in the hands of a small number of people, the potential for abuse increases dramatically.

The power of institutions in a centralized world

Holtzman argues that the accumulation of power within institutions, especially in Western countries, has reached a critical point. He suggests that this trend has been increasing over the past 50 years, driven by the expanding influence of corporations and states. Unlike the 1950s and 1960s, when institutions became more accountable, organizations today exercise unprecedented power over personal data.

I am particularly concerned about the consolidation of corporate power. Big tech companies, with their massive data collection capabilities, have become the gatekeepers of the digital age. They have the ability to control access to information, influence public opinion, and surveil individuals on a global scale. These power dynamics erode trust and pose serious threats to privacy.

The role of AI and quantum computing

Advances in AI and quantum computing are changing the landscape of digital security. AI’s ability to identify patterns and predict behavior offers opportunities for innovation, but it also raises ethical concerns. For example, AI-based surveillance tools can monitor populations with unparalleled precision, allowing authoritarian regimes to suppress dissent. Likewise, when companies use AI for targeted advertising, user privacy is often compromised.

Quantum computing presents another layer of complexity. These powerful systems have the potential to render current encryption methods useless, exposing critical systems to cyberattacks. This includes everything from banking transactions to military communications. As Holtzman points out, the centralization of data magnifies these risks, making it essential to explore alternative solutions.

Decentralization as a solution

A potential path forward is provided by decentralization. Decentralized systems distribute control across the network, eliminating the single point of failure of centralized models. Blockchain, the underlying technology of Web3, provides a framework for decentralization by promoting immutable records and trustless interactions.

Data security using quantum-resistant algorithms is one such application. These algorithms are built to resist the processing power of quantum computers, so sensitive data is protected. Additionally, as Holtzman said, decentralizing AI through blockchain could add human checks against abuse of the technology. This strategy empowers the people while also reducing the concentration of power in a few actors.

Privacy and Data Ownership in Web3

Privacy-protecting blockchain technology is leading the way in solving problems caused by centralized systems. These protocols enable selective disclosure, allowing people to convey only the information they need without revealing their entire data profile. For example, zero-knowledge proofs provide a viable way to protect privacy in on-chain transactions by enabling verification without revealing the underlying data.

Avidan Abitbol, ​​Data Ownership Protocol Project Director, emphasizes the importance of privacy in the adoption of Web3 institutions. Organizations are unwilling to adopt decentralized systems without strong privacy safeguards. Technologies like zero-knowledge proofs bridge this gap, making decentralized solutions feasible for a wider range of users through selective disclosure.

Decentralized AI for Sovereignty

Another important area of ​​interest is the creation of decentralized AI. Traditional AI solutions often benefit businesses more than people, according to executives at Onicai, a decentralized AI company. Decentralized AI, on the other hand, places a higher priority on user autonomy, ensuring that users retain control over their data and the AI ​​tools they use.

Concerns about closed source code, often used by big tech companies, can also be addressed through decentralized AI. Decentralized, open source methods encourage accountability and openness while reducing the potential for abuse. This strategy is consistent with Web3’s overarching goals, which include building a more user-centric and democratic online space.

Biometric data and the risks of centralization

One of the most sensitive types of personal information is biometric information. Centralized systems that hold biometric identifiers, such as fingerprints or facial scans, are particularly vulnerable to intrusions. Evin McMullen, co-founder of Privado ID, emphasizes the need to limit access to biometric information. Selective disclosure allows people to grant access to their biometric data only to those who need to know.

This strategy protects your privacy while reducing the risk of data breaches. Solutions like Privado ID allow customers to maintain control over their most sensitive data by decentralizing the management and storage of biometric data.