Andreas Antonopoulos frequently states in his talks, books and videos:
“Your keys, your money. Not your keys, not your money”.
This is almost a principle to crypto users, but users keep leaving their funds in centralized exchanges so every now and then it has to be repeated:
“Your keys, your money. Not your keys, not your money”.
When the thing that’s compromised is money, it seems to be easier to understand because it is something “visible”, an asset. But what happens when that asset is your information, your personal data, your privacy?
We are used to give our personal data to governments, banks and other centralized institutions because they say: “hey, you need to prove who you are, we need to certify it.”
So it felt almost natural for us to give our personal data to Facebook, websites and exchanges. Either way, if you don’t do it you can use their services.
The problem with this model is that data is stored in their servers, within their databases, with their security measures and at the fingertips of their admins.
A centralized model that is highly vulnerable to security breaches.
Over and over we hear news about these security breaches, you probably remember about Cambridge Analytics and Facebook, here are some other ones:
Five million bulgarian citizens had their personal data exposed
“Massive Data Breach in Bulgaria Compromises the Country’s Entire Adult Population”
https://www.cpomagazine.com/cyber-security/massive-data-breach-in-bulgaria-compromises-the-countrys-entire-adult-population/
An extortion to Binance
An Extortion Gone Bad: Inside Binance’s Negotiations With Its ‘KYC Leaker’
https://www.coindesk.com/a-bitcoin-extortion-gone-wrong-inside-binances-negotiations-with-its-kyc-hacker
And one particularly disturbing intrusion to user’s privacy:
British Authorities Seek Data from Crypto Exchanges in Search of Tax Evaders
https://www.coindesk.com/british-tax-authority-seeks-customer-data-from-crypto-exchanges-in-search-of-tax-evaders
As we can see again and again, paraphrasing Andreas Antonopoulos: “Your device, your data. Not your device, not your data”.
How can this be changed?
Internet of People is working to solve this problem.
IOP is building a full stack technology that enables users to have complete control over their digital identity.
Pretty good statement right? But, what does it mean?
It means that this new model based on blockchain and advanced cryptography is decentralized.
Your personal data stays with you, not in servers. If you have to provide some proof of who you are or a personal achievement, you give just the data that is necessary to do it.
In the words of one of the founders:
“The following would be possible. You create a DID, then you create different claims to this DID that are necessary for KYC verification. For example, name, date of birth, address, ID number, etc. These claims can now be cryptographically confirmed by a recognized authority. Now, for example, you go to an exchange that has integrated our system. Then you just have to register with your DID and the Exchange has the necessary confirmations immediately. Without uploading any kind of sensitive data, such as ID, photo, etc. on the server of the exchange. This makes something like the Binance KYC leak impossible.”
This is just a hint of the future that is coming.
Internet of People is building this future.