A Decentralized Solution for Privacy

It is tempting to look at the data crisis and think, “blockchain can solve this.” And yes, to respond to crises caused by over-centralization, we need more decentralization. But when we look more closely, we see that blockchain is not quite the decentralized solution we need.

There are elements of the data crisis that blockchains can address. Blockchains bring transparency and correctness to systems. We could have seen publicly whom Facebook is sharing our data with and for what purposes. We could have identified how echo chambers were being created on Facebook’s platform.

However, blockchain could not have prevented the bulk of this crisis. Entities like Cambridge Analytica would still have accessed our data, our likes, and our network. They would have found ways to spread divisive messaging and help conduct a misinformation campaign.

This is because while blockchain is great for correctness and transparency, it fails in privacy. Today, as blockchain is applied to the financial system, we see all transactions that have ever taken place. In a future where we have decentralized social networks, we will see all likes, posts, and connections. In other words, blockchains alone cannot give people the control over their own data.

So we need a way to give individuals control over their data within a decentralized system. The answer is not blockchain — it is a complete privacy protocol that includes a blockchain. Using advanced methods of cryptography, we can empower our society with data, yet give us the control over where and how our data is used. This area of computer science is called secure computation.

In more understandable terms, secure computation deals with the following question: how can we process information we cannot see, while still obtaining insights that advance our society? How can we analyze data without exposing the data itself? While this sounds like a magical black box approach, it actually works. With privacy protocols, we enable true decentralization — free from the risks of centralized systems, and more powerful than what blockchain alone enables.

We can imagine a decentralized social network, where nodes can sign smart contracts to indicate friendship. Pictures can be stored on IPFS and selectively shared. Podcasts from DotPodCast can be shared throughout this network. The underlying database that tracks your activity can be stored on a node you run or distributed throughout the nodes of the privacy protocol. If an OpenBazaar merchant wants to target you for advertising, you give consent that your data can be used by smart contracts that are developed for targeting. You can even get back the value of your own data. When all this happens, an individual can truly control her own data.

It is important to note that we are a couple of years away from having a functioning decentralized social network. It’s also important to note that we are making significant simplifications above. But most importantly, this vision is really possible.