The Future Of Decentralised Data: Exploring Its Impact On Business And Technology

The Future of Web3: Secure and Private Decentralized Data Storage

Since the inception of the internet, we have made considerable headway when it comes to decentralizing data, giving internet users the freedom to create content and share it on the web. Yet, users still don’t have the power to own and control this personal data and information. Big Tech and governments routinely collect Web2 users’ data, so many have yet to experience what true privacy and ownership is. Web3 is the next iteration of the internet, and it promises to revolutionize the way we interact with the digital world. At its core, Web3 is defined by open-source technology that utilizes blockchain to create a trustless and permissionless internet. This approach ensures the security and privacy of data, reduces the risk of data breaches, and eliminates the need for intermediaries in transactions. In Web3, users will experience a world whereby the internet is trustless and permissionless.

In the digital age, personal data is a crucial part of an individual's identity, and it should be treated with the same respect and privacy as any other inalienable part of human identity. As a society, we must embrace high standards for treating people with privacy and respect, and it's imperative to enforce these standards in the digital realm. To achieve this, we must promote human rights through digital sovereignty, and it's our responsibility to do so. We need to create systems that allow individuals to own their identities, share digital credentials, and revoke personal information as needed. The next digital age will be trustless, and we must empower each individual to own their identity and personal identifiers that help differentiate them. This can be achieved through secure digital identity technology, which is crucial for building a foundation of trust and minimum security threshold for internet users to embrace Web3.

Respecting Privacy and Empowering Users

Swarm, a decentralized content and data storage platform, graduated from the Ethereum Foundation in 2019. The Swarm Foundation was then created and further incubated the Fair Data Society, an initiative for decentralized self-sovereign data commons. Its core principles are founded upon an ethical standard for collecting, processing, and storing personal data. As a coordinated network developing infrastructure and dApps for a fairer data economy and promoting human rights through digital sovereignty, Fair Data Society envisions a world in which data is recognized as a common good and its usage benefits everyone, rather than being exploited by a few centralized entities.

Following years of incubation, the Fair Data Society initiative recently announced its graduation from Swarm and its plan to move onto an independent path. In line with this, the Swarm Foundation has pledged 2 million BZZ over the next decade, in order to provide support for layer 2 projects that empower privacy, interoperability, and digital freedom.

Developed under Fair Data Society, the Fair Data Protocol aims to provide Web3 storage for dApps to connect and use, allowing for fair access and re-use of data on a global scale, addressing the challenges presented by Web2. Developers can create and build interoperable, decentralized and open-source dApps so users can reclaim their privacy, own their data and control their digital identity. It has coordinated network developing infrastructure and dApps for a fairer data economy. The applications stem from Fair Data Protocol a data interoperability protocol for dApps that use personal data to FairOS a decentralized OS that manages the resources of the computers in its network, like storage and compute.

This collaborative approach enables the development of solutions and services that respect individual privacy and empower users to control their own data. Furthermore, the Fair Data Society initiative allows stakeholders and businesses to contribute to the establishment of a more equitable and ethical data economy that benefits all participants.

Ethical Practices and Decentralized Technology

The rise of significant cybersecurity incidents in 2022 has made online users more aware of their online identity. While users may now be better equipped to determine what information they want to disclose on these platforms in the wake of this, it remains a challenge to ensure that data is protected. Decentralized content and data storage can finally provide the privacy and security needed to protect users’ identities from the hands of Big Tech and malicious actors. Swarm supports the Fair Data Society as it has an aligned mission to create a technically effective solution that leads to a beneficial social impact by promoting data use that is ethical and fair.

Developing open and decentralized technology brings with it many challenges, particularly when it comes to ethical practices. The Swarm Foundation recognized the endless possibilities that the Fair Data society can provide to both business and technology. Acknowledging that developers cannot predict or control how future technology will be used, nevertheless the two entities are hard at work imparting positive incentives and examples that will lead this new ecosystem into an trustworthy and efficient future.

Specifically, organizations must adhere to external ethical guidelines rather than creating their own internal ethics charter. Providers must understand the importance of incorporating ethics into the design process; and position themselves as thought leaders in the space, steering the wider ecosystem in a fair and ethical direction. Due to Web3 being built on the foundation of trust, security, and transparency, we must place a focus on the way that systems are built, rather than solely on innovation. It is essential to build decentralized systems that are both ethical and credible to achieve widespread adoption of Web3 and blockchain technology.

Participatory Democracy: Promoting Ethical, Responsible, and Transparent Data

This is where the importance of participatory democracy comes into play. Participatory democracy can help ensure that users' privacy is respected, and their rights are not violated by companies seeking to profit from their personal information by enabling users to have a say in the management and control of their personal data. Decentralized content and data storage can provide the privacy and security needed to protect users' identities from Big Tech and malicious actors.

Promoting ethical, responsible, and transparent data practices has numerous benefits. A fair data society would require businesses to collect and use data ethically and transparently, helping to prevent the misuse of personal information and ensure that businesses are held accountable for their actions. By promoting the ethical use of data, a fair data society would help to build trust between businesses and individuals, leading to more sustainable and equitable relationships. Decentralized data has the potential to drive innovation and collaboration, enabling businesses to share information more easily and efficiently, leading to improved decision-making and more effective use of resources. It's essential to build decentralized systems that are both ethical and credible to achieve widespread adoption of Web3 and blockchain technology.

This post is commissioned by Swarm and does not serve as a testimonial or endorsement by The Block. This post is for informational purposes only and should not be relied upon as a basis for investment, tax, legal or other advice. You should conduct your own research and consult independent counsel and advisors on the matters discussed within this post. Past performance of any asset is not indicative of future results.