Centralization poses an authoritarian threat to online privacy, warns a top executive in the Web3 space.

In an interview with Cointelegraph, David Holtzman, a former military intelligence professional, author, White House adviser, and chief strategy officer of the Naoris decentralized security protocol, highlighted the risks associated with centralized data systems. According to Holtzman, these systems are vulnerable to abuse by state and corporate actors due to their single point of control.

The Problem with Centralized Systems

"The whole problem with centralized systems is that there’s a center," Holtzman explained. This concentration of power creates an environment in which institutions can manipulate data for their own interests. As the executive pointed out, "you can do anything you want with a centralized system."

The security of centralized systems is further compromised by advancements in artificial intelligence (AI) and quantum computers. AI can be used to analyze vast amounts of data, identifying patterns and trends that may not be immediately apparent to human observers. Quantum computers, on the other hand, have the potential to break even the most secure encryption standards currently in use.

Decentralizing Data: A Solution to the Centralized Problem

However, Holtzman notes that these threats can be mitigated by decentralizing data and AI through blockchain. By spreading data across a network of nodes rather than storing it on a single server, institutions can protect against hacking and cyber attacks. Moreover, quantum-resistant algorithms can shield private data from being compromised by future quantum computers.

Despite these advances, Holtzman emphasized that the threat of concentrated institutional power remains an issue. "I think humanity is due for a bit of a shakeup because we’ve given too much power to institutions in the last 50 years — not just the military either," he said. Corporations have amassed significant influence in Western countries over the past few decades, and Holtzman believes that this must change.

Decentralization as a Hedge Against Paradigm-Shifting Technology

The threat of quantum computers is particularly pressing for digital finance, banking, healthcare systems, and military intelligence. If left unchecked, these machines could break the encryption standards currently in use, exposing sensitive information to those who would seek to exploit it.

Related: Google Unveils New Quantum Computing Chip: Clock Ticking for Crypto Encryption?

In response to this threat, institutions are exploring new technologies that prioritize data protection and individual control. The Data Ownership Protocol is one such project, which aims to enable individuals to manage their personal data in a decentralized manner. Avidan Abitbol, the project director, explained that selective disclosure through zero-knowledge proofs can protect data from being tracked by threat actors.

Web3: A Future Where Institutions Must Embrace Decentralization

According to Abitbol, institutions will not be able to avoid embracing Web3 without prioritizing privacy. "We’re seeing a lot of institutions start to explore and experiment with blockchain-based solutions," he said. However, if these efforts are to succeed, they must prioritize the protection of individual data.

Web3 Executive: "Institutions won’t be able to navigate this new landscape unless they place the needs of individuals first."

Decentralized AI developers Onicai have also voiced concerns about the impact of Big Tech companies on personal data. In a statement released in November, the company highlighted the importance of decentralized AI for ensuring self-sovereignty and preventing corporate control.

The Threat of Biometric Data Exposure

Evin McMullen, co-founder of Privado ID, a decentralized identity solution, emphasized the threat posed by biometric data exposure to centralized third-party service providers. According to McMullen, individuals must have control over their sensitive data to prevent exploitation.

"Selective disclosure of biometric identifiers makes sensitive data available on a need-to-know basis, controlled entirely by the individual who owns the biometric data."

Conclusion

The rise of quantum computers and AI has highlighted the weaknesses in centralized data systems. As institutions navigate this new landscape, they must prioritize decentralization and individual control to protect against exploitation.

By leveraging blockchain technology and prioritizing data protection, we can mitigate the risks associated with these paradigm-shifting technologies. The future of security and freedom depends on our ability to adapt to changing circumstances and prioritize the needs of individuals over institutional interests.