Artificial intelligence (AI) is increasingly integrated into everyday life, raising concerns about user privacy and data ownership. Petrix Barbosa, CEO of Matchain, highlights the potential of decentralized identifiers (DIDs) to address these privacy challenges.
Data privacy and ownership have long been a topic of discussion in the field of Internet technologies. When we look back at the Web 2.0 era, which focused on user engagement with interactive platforms, we see challenges related to data privacy, identity theft, and autonomy in the management of personal data. The widespread collection and use of personal data by companies during this period has heightened user concerns. to show There is a direct correlation between targeted advertising and the feeling among many people that their privacy is being sacrificed for commercial profit.
The vast majority of users say they value privacy. Source: Cisco Consumer
Touted as the next evolution of the internet, Web3 aimed to solve centralization issues while emphasizing user empowerment. While decentralized Web3 networks are the answer to centralized data stores that compromise user privacy, blockchain identities lack interoperability. Despite their promise, the Web3 landscape is plagued by fragmentation issues.
What makes matters worse is that current AI models continue to use personal data without explicit consent, increasing privacy concerns and allowing companies to profit at the expense of user rights.
Users have trust issues with companies that use AI
As discussed At the World Economic Forum, privacy is becoming a public policy issue worldwide due to the overuse and mismanagement of personal data by some companies. Much of the sensitive data belonging to users is collected to improve AI-based processes. Search algorithms, voice assistants, and recommendation engines are just some of the solutions that use AI based on large data sets of real users.
Centralized AI platforms, such as Google and Facebook, create a reality where data monetization often occurs without explicit user consent, creating a breakdown in trust. The opaque nature of data transactions in these models increases the risks of data misuse and decreases user control.
Most Europeans believe that there will be no effective control over companies using AI. Source: European Consumer Organisation
This pattern has led to a troubling paradox: as AI’s capabilities grow, so does the risk of misuse of the data that powers it. It’s no surprise, then, that 59% of consumers believe that companies are generally more concerned with profiting from their data than protecting it.
Fortunately, the challenges of user privacy and data management are not insurmountable. Blockchain technology is emerging as a critical solution across various industries, especially when integrated with AI, paving the way for a transformative approach to user privacy.
Improving user privacy with decentralized identifiers
The integration of decentralized identifiers (DIDs) into Web3 marks a significant step forward in improving data security and privacy. DIDs allow users to manage their digital identities independently, without relying on centralized authorities, thereby promoting a more secure and autonomous online presence. Verifiable identifiers complement this approach by providing a cryptographically secure method to authenticate and verify these identities without compromising privacy.
DID architecture ensures that personal data is shared only with explicit consent and strictly for the intended purposes. Such a system not only improves user control over personal information, but also significantly reduces the risk of unauthorized data access and breaches.
Multiple DIDs can be used for different purposes and types of interactions.
The technology is taken further with Layer 2 aggregations that integrate AI functions directly into the blockchain. Through this integration, sophisticated AI algorithms can be leveraged to create comprehensive identity aggregation and data interoperability solutions across different platforms.
For example, decentralized AI blockchain Matchain, which launched its mainnet in late August, leverages this technology through its MatchID data aggregator, ensuring that data is only shared with explicit consent and for the intended purpose. MatchID redefines digital identity with a low-threshold DID record that seamlessly onboards Web2 users and connects interactions across multiple blockchains. It also provides users with a dashboard that displays their data points or values based on their digital footprint and activities across various applications and dApps. The system allows users to seamlessly transition from Web2 to Web3 while maintaining control of their data.
Making privacy a user-driven choice
In addition to technical advances, the development of decentralized platforms also places emphasis on ethical AI practices and user empowerment. By prioritizing privacy, data ownership, and ethical use, these platforms are setting new standards in the digital ecosystem. They aim to democratize data ownership, making privacy a user-driven choice and providing the tools for users to leverage their data for personal, social, and economic purposes.
Matchain CEO Petrix Barbosa says decentralized credentials are opening a new chapter in the blockchain community. With the official launch of their mainnet, it aims to enhance the capabilities of DApps and drive blockchain adoption.
Blockchain technology continues to evolve, not only improving security and privacy, but also has the potential to transform the management of digital identities and user data. This technological shift represents a significant step towards a more secure, autonomous, and ethical digital future.
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