How Web3 is Transforming Data Privacy and Why It Matters

A significant 92 percent of people in the United States expressed worries about their online privacy, underscoring the impact of recent large-scale data breaches and discussions surrounding the commercialization of data by major tech companies on users' trust. This anxiety has intensified with the emergence of unclear artificial intelligence technologies and changing social and political environments.

Gaps in regulation

The General Data Protection Regulation (GDPR), introduced by the European Union in 2018, was a pioneering effort to bolster the privacy rights of internet users; however, it has notable flaws. Despite its intentions, GDPR and other regulatory measures have struggled to effectively hold major technology firms like Google and Meta responsible for their practices regarding user data collection and sales.

Reports indicate that investigations into alleged GDPR breaches can take years—sometimes over four—to resolve. These delays are often due to complicated processes involving various agencies and countries addressing complaints against particular companies, which results in significant backlogs and undermines the regulation's enforcement capabilities.

In contrast, the lack of a unified federal data protection law in the United States has prompted many states to implement their own regulations. This fragmented approach may inadvertently create more challenges than solutions, as differing state laws introduce compliance difficulties for businesses that operate across multiple jurisdictions.

Consequently, users experience inconsistent levels of data protection depending on their location at any given time. Additionally, small- and medium-sized enterprises face increased costs when trying to develop tailored compliance strategies for each state's requirements, putting them at a disadvantage compared to larger corporations like Big Tech.

At the same time, major technology companies have been exerting considerable influence through aggressive lobbying, arguing that any substantial legislation could hinder innovation. This is an important conversation to engage in; however, firms that rely heavily on revenue generated from data-driven advertising are opposed to stronger consumer data protections.

Even with increased awareness of the importance and risks associated with personal data privacy, centralized organizations—such as large tech firms and government bodies—maintain significant control over user information. While regulatory measures are generally seen as beneficial, the opacity surrounding the motives of Big Tech and governmental entities fails to alleviate the skepticism many individuals feel towards both.

Web3’s heightened role

This is exactly where the decentralized framework of web3 can circumvent centralized organizations that may not prioritize the interests of the majority of users, thereby enhancing data security. While blockchain and web3 have undergone numerous developments and applications aimed at generating wealth through gaming, cryptocurrency initiatives, and various other methods, many projects and developers overlook or fail to recognize the significant opportunity they have to safeguard user information.

The intrinsic encryption technology and unchangeable ledger of blockchain have led certain web3 privacy initiatives to position themselves as viable alternatives to the prevailing web2 framework, which primarily focuses on generating ad revenue from online activities.

A notable example is tomi, a decentralized autonomous organization (DAO) that harnesses the data-preserving capabilities of web3 to establish a privacy-centric alternative internet. tomi prioritizes security, data confidentiality, and freedom of expression in its operations and offerings.

This commitment is evident through services aimed at enhancing its mission, such as a VPN, secure storage solutions, and private messaging tools designed to protect users' online activities and communications by leveraging web3's data privacy features.

Governed by its community and designed with a user experience similar to that of web2, tomi strives to make decentralized technology user-friendly and accessible. Despite users' desire for greater data protection measures, many are reluctant to adopt them if they involve any inconvenience—a challenge that numerous web3 infrastructure projects hesitate to tackle.

The key takeaway is clear: web3 initiatives need to embrace their roles as advocates for data privacy in an increasingly complex regulatory environment globally. By providing alternatives for individuals wary of both Big Tech influence and regulatory excesses, developers can present a robust case that remains relevant even during market fluctuations.

However, it's crucial that enhancing privacy does not compromise user experience; maintaining this balance is essential for attracting a substantial user base willing to transition into the world of web3.