Transparency has long been a major benefit of blockchain technology. However, for continued growth and adoption, the lack of data ownership and protections is limiting blockchain’s impact on institutions and privacy-oriented users. Institutions need privacy for regulatory compliance, and users want to ensure their data isn’t falling into the wrong hands, but without protections, data is freely available. I sat down with Avidan Abitbol, Project Director at Data Ownership Protocol, to discuss on-chain data ownership and privacy-friendly blockchain.
Q1: Has blockchain been successful in giving us ownership of our data?
Users are the rightful owners of their data, and blockchain has undoubtedly made data usage more democratic. Decentralization has helped break down data oligopolies. Yet, many users remain unsure about how their data is being used — beyond the mere fact that companies and governments are collecting it.
As early as 2019, a Pew Research survey revealed that most respondents believed it was impossible to avoid data collection in daily life — 62% from companies and 63% from the government. Even more were concerned about how companies (79%) and the government (64%) used this data.
DOP fills this crucial gap, addressing users’ sense of losing control over their data and empowering them with the flexibility to decide how much of their data they want to share and with whom. This focus on data ownership and selective transparency has been a game changer in how we own and utilize data.
Q2: Can you explain what you imply when you stress the notions of “data ownership” and “selective transparency?”
We have realized, through careful assessment, that the inherent, absolute transparency of the blockchain is not necessarily a good thing. Our solution is designed to strike the right balance between the need for transparency and the risks of over-transparency. This is where data ownership also comes into play.
We ensure selective transparency by assigning data ownership. Anyone using our solution — individuals or businesses — is at liberty to keep sensitive information protected and publicly share only what is relevant.
Our selective transparency feature empowers users with flexible control, allowing them to decide what to share and with whom, whether it’s the visibility of specific tokens or the amount of assets. Through this, we offer what is arguably the most democratic, autonomous, and efficient data ownership protocol possible.
Q3: Do you believe your solution can benefit the crypto world by driving mass adoption?
There are several reasons why we firmly believe that DOP’s solutions will contribute immensely to the mass adoption of crypto. Let me highlight a few of the most critical ones:
We help the system eliminate prohibitive over-transparency. If I draw a parallel between the traditional finance world and the world of crypto, we see that transparency is something that is often forcefully thrust upon participants in the crypto space, serving no greater purpose. In the trad-fi world, bank account details are not visible to the entire world. Why should it be any different for crypto wallets? Transparency can also compromise compliance efforts by exposing sensitive business data, potentially leading to misinterpretation or regulatory scrutiny.
Divulging data in the name of mandatory transparency may ultimately end up aiding malicious actors to taint user funds on the blockchain—sending illicit funds to legitimate wallets, which can unfairly flag innocent users or businesses. This scenario could hamper the functioning of individuals and businesses. Absolute transparency makes it possible for any user to send crypto assets to any wallet.
If the sending wallet is already flagged for illicit activity, the receiving wallet is flagged simply for receiving suspicious funds—a grossly unfair outcome. We use several layers of protection in collaboration with the best of the industry, such as Chainalysis and Hexagate, to keep such tainted funds out of the ecosystem.
At DOP, we ensure that privacy is not just a fashionable term but a practical necessity. Our solutions are designed to help individuals and businesses prosper with adequate ownership and control of what they choose to share with the world—and what they choose to keep private.
