Newsletter - July 2023
Dear Partners and Friends,
Welcome back to the second edition of our research series on key concepts and developments in Web3.
The emergence of Web3 has redefined the internet using decentralized blockchain technologies to empower individuals with control over their data and greater safeguards over their privacy. As Web3 eliminates the need for a centralized entity to manage identities on the internet, individuals can now interact directly with others using self-sovereign identities, enabling greater autonomy, privacy and protection for all users.
A New Era of Internet Privacy on Blockchain
Importantly, the business case for privacy complements the decentralised ideals underlying Web3 - personal data breaches from centralized data repositories is a US$18bn global problem annually for enterprises across every industry . Web3 models not only enable transaction efficiency through making information instantly available and verifiable, they enable privacy safeguards that shield and control the flow of user data with cryptography. In this report, we use global gaming and ecommerce industries (touching 3 and 5 billion individuals, respectively) to elaborate the value created by mitigating data security risks. In addition, we highlight how users are able with minimal effort to personalize the content that third parties are allowed to monetize while also being protected from theft, fraud and inappropriate content.
We focus on Web3’s privacy infrastructure at the user / app level without going into protocol level and network level privacy considerations. One of the policy debates at all three levels relates to the regulatory calling for greater transparency and accountability in cryptocurrency transactions, which we believe is appropriate. This report highlights some of the technological solutions on blockchain that ultimately enable enforcement of privacy as a basic right that can co-exist with accountability alongside obvious economic benefits.
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