Why is decentralized data privacy important? Let’s take a look at the Facebook-Whatsapp Data Scandal
As most of you may be aware, it was revealed in April 2018 that WhatsApp co-founder and CEO Jan Koum is leaving the company amid arguments with parent company Facebook over repeated attempts to make use of the personal data of their userbase. The timing of this couldn’t be worse for Facebook, who is doing damage control over the Cambridge Analytica scandal where Facebook is revealed to have shared the data of up to 87M users.
Facebook usage of WhatsApp user data has in fact, been going for some time. In 2016, it was reported that WhatsApp would conduct data sharing on information such as user’s phone numbers with Facebook after being pressured to change its terms of service, allowing more targeted advertising to their respective Facebook accounts.
Even so, WhatsApp has drawn a clear red line and resisted data collection from content within messages, using encryption end-to-end from sender to recipient to protect the data privacy of its users. That did not stop Facebook from pushing for the weakening of its data encryption which led to Koum making up his mind to leave Facebook, who has been contemplating it since late last year.
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Without Koum at the helm, it’s possible that data privacy violations could increase — considering that the company’s entire business model is based on targeted advertising around personal data.
Personal Data is Gold. The incentive for misuse is high by malicious actors. Why is there this problem in the first place and what can be done about it?
Problems with Data Centralization
Data privacy problems had ultimate arose due to the centralization of critical services and platforms that an overwhelming amount of people use — Google, Facebook, WhatsApp are some of the most popular examples. Not only is the data owned not private (as we have seen in Cambridge Analytica), the centralized system allows for a single point of failure that are vulnerable to data breaches.
Centralized platforms also benefit from a network effect, and as they gain a monopolistic market share, they are increasingly unlikely to prioritize the privacy needs of the individual user, especially since it would eat into their bottom line. The inertia is unfair for users who do not have a viable, alternative platform.
So, how could the issue mentioned above be solved?
A solution exists, with the advent of distributed ledger technology such as blockchain. An implementation of blockchain technology enables a transparent, auditable ledger where data cannot be collected and sent without the knowledge and consent of the user, and removes a single point of failure for potential data breaches.
So how exactly does blockchain technology solves this problem? Lets take a look at an example, SWIPE , a blockchain startup on monetizing and building a decentralized mobile data engagement platform.
About SWIPE
SWIPE aims to create a network of apps that are able to work together to create valuable data as a collective, instead of relying on centralized intermediaries. As part of the network, all data collected will be aggregated, anonymized and encrypted. It will then be channeled into an analytics engine which packages it to be monetized directly to data buyers in a decentralized data marketplace. This process provides transparency to data buyers as they can trace the origins of the data, creates a fairer way for app developers to monetize data and empowers users by giving them full control and ownership of their data. SWIPE is invested by Kenetic, a blockchain firm that invested in huge blockchain projects like Zilliqa, ICON, and Bluzelle.
CONCLUSION
SWIPE creates a much fairer system for app users, app developers and data buyers, while giving back data control to users. Instead of feeding revenues to tech companies like Facebook and not being incentivized, now app users are able to monetize their personal data through SWIPE. To find out more, you can directly check out their Medium Blog here.
“IT DOESN’T TAKE A GENIUS TO FIGURE THE PROSPECT OF DATA PRIVACY BLOCKCHAIN STARTUPS LIKE, SWIPE.”
Hope you GUYS are together with me and SWIPE right to data privacy!
Do check out their webpage for detailed information and join their telegram group for better engagement with the team!
SWIPE Info:
Website: https://swipecrypto.com/
Telegram: https://t.me/swipecrypto
Medium: https://medium.com/swipecrypto
Reddit: https://www.reddit.com/r/swipecrypto
Personal LinkedIn: https://www.linkedin.com/in/georgie-fong
