Opinion Web3 surveillance highlights the necessity of onchain data ownership

Disclaimer: The author’s views and opinions expressed in this article are personal and do not reflect the views and opinions of crypto.news’ editorial team.
Blockchain technology is known for its transparent nature, revealing every transaction with crystal clarity. It’s akin to living in a glass house where everything is visible, serving as a major selling point. However, this transparency also has its drawbacks. It’s like being in a room with glass walls, forgetting that others can see in just as easily as we can see out. This level of openness is reminiscent of the early days of the internet (web1), where information flowed freely. Unfortunately, it has started to mimic the transition from web1 to web2, where data was collected, analyzed, and monetized without our knowledge.
The allure of blockchain lies in its honesty and integrity, but it also brings the challenge of over-transparency. Similar to web2, where tech giants monitored online activities and collected data, blockchain’s transparency allows anyone to observe digital actions, including sensitive financial data that was once encrypted and considered private in web2. While this transparency is crucial for blockchain’s reliability, it also exposes users to a level of scrutiny that may exceed their expectations.
Initially designed as a groundbreaking space that empowers individuals with control over their digital presence, blockchain now requires a delicate balance to offer a user-friendly experience that respects autonomy while maintaining transparency.
Living under constant observation in a fishbowl, users in the blockchain world face risks they may not have anticipated. The open ledger becomes a double-edged sword, potentially exposing users to targeted phishing attacks by malicious actors who exploit transaction data for scams.
This vulnerability not only raises concerns about individual privacy but also challenges the decentralized values of web3. The promise of a decentralized future hinges on user empowerment and security, but excessive transparency may inadvertently lead to a concentration of power in the hands of those who can exploit on-chain visibility.
The concept of decentralization aims to empower individuals and move away from the centralized control of web2. However, the current state of blockchain transparency could inadvertently replicate the centralized dynamics it sought to disrupt. With every transaction laid bare, power dynamics shift towards those who can access, analyze, and leverage this information, potentially creating a new digital divide.
To address these challenges, advocating for on-chain data ownership emerges as a critical solution to preserve the decentralized ethos of web3. By enabling users to control their data visibility actively, blockchain data ownership shifts the focus from passive transparency to active control, empowering users to choose what information remains public and what stays private.
This shift towards user-controlled data visibility is essential to strike a balance between blockchain’s necessary transparency and user autonomy. Various tools and mechanisms can be employed to enhance privacy and selective disclosure, ensuring that blockchain remains a transparent and trustworthy ledger without compromising user privacy.
Vitalik Buterin introduces an intriguing perspective on on-chain transparency, emphasizing the connection between privacy and regulation in the blockchain sphere. He challenges the notion that everything on the blockchain must be public, suggesting that there is a middle ground that allows users to reveal only necessary information while keeping the rest private.
As we stand at a crossroads for blockchain technology, it’s crucial to empower users through data ownership in web3. By taking control of what information is shared and what remains private, users can shape the future of blockchain, ensuring that it remains a place where everyone can participate without feeling exposed.