Does blockchain decentralization hold the key to protecting our data?

The benefits of blockchain for all types of online businesses and their consumers are incalculable. It cuts down dramatically on fees as there are no middlemen, it also offers greater security and transparency and then, of course, there is decentralization. This is where the repercussions for consumer privacy can be most powerfully felt.

To help us examine Blockchain decentralization as a tool in the protection of consumer data rights, let’s use a case study. The Liberdy Data Foundation serves as a great example of how Blockchain technology can completely disrupt the power dynamics of an entire industry, in this case, the world of digital advertising.

Decentralization puts you in control

When it comes to decentralization, the primary advantage is that no single entity holds the reins. This has a far-reaching impact for users of all types of online products and services.

Currently, consumers hand over their data to online companies for free and have no idea what is happening with it. Either intentionally or unintentionally, these companies are enabling a variety of entities to gain access to our data without our permission and in the worst-case scenario, it is being stolen or used to exploit and manipulate us. Data is kept on the company’s servers, so the likes of Facebook, Google, or Amazon can misuse it, or pass it on to 3rd parties, as they see fit and this consolidated storage approach also makes it more vulnerable to hackers.

The @Liberdy Data Foundation is a blockchain-based digital advertising company that is creating a new ad marketplace where the consumer controls their data. Personal information is anonymized and encrypted and then the consumer is paid for its use.

Liberdy uses a decentralized #blockchain based system, so in contrast to the status quo described above, no single server is holding all the information and every consumer’s data is stored independently. The consumer, as the owner of the data, holds the decryption key and only they have access to their own information. Data is dispersed and so in this respect, each user is their own island, yet they are also on the network. They can choose to share which information they wish to publish, with which specific industry verticals. Once they choose to join the network certain encrypted and de-personalized data is shared, but this depersonalized data cannot be shared without their knowledge or permission. While some data is stored centrally, it cannot be traced back to the users, as it is “anonymized”, and serves highly specific use cases. It cannot be used or monetized in any way.

Transparency in a decentralized system means you don’t have to trust

Liberdy’s blockchain-based system ensures that every deal is transparent so there is no working around the user and cutting them out of the deal. In a decentralized structure, there is no way to overwrite the system and let Liberdy change the rules on its own. Since the information, needed for the data purchase process, is not stored on the company’s servers, as it is with the other digital giants that harvest our data it cannot be shared behind the scenes with parties to whom the consumer has not given their consent.

Information is sent from the Liberdy-user’s device to 3rd party storage. The user then shares their chosen data, and since all transactions are public, they can then view when that information is shared. Liberdy is notified by the blockchain that information is waiting, and the user is paid with an automatic settlement via smart contract.

As we can see from this case study, the power of a decentralized network to disrupt how entire industries function cannot be underestimated. Its capacity as a tool to protect the privacy of user data is changing the way information is traded, revolutionizing the global data marketplace.

To learn more about Liberdy, go to Liberdy.io, or join their Telegram, Twitter, Facebook, or Linkedin communities to get the latest updates.