Our economic system’s value chain has undergone a sea change.
In the past, work was used as a source of energy. In today’s knowledge-based economies, it’s all about focus and initiative. As a result of this new model, Web2 organizations place such a high value on personal data: information leads to comprehension, which leads to prediction, which eventually leads to action. Companies can better market and compel customers to take action if they thoroughly understand the consumer.
If you’re using Web2, you’re in a constant state of targeted marketing.
We’re giving them access to our data as long as we’re using social media, applications, or even our browsers. Everything you do on the internet is being mined for data points. With so much of our lives now being lived online, the potential for data collecting has increased exponentially.
Algorithms can map likes, dislikes, values, and other characteristics to produce comprehensive virtual profiles, which can then be sold to third-party data brokers. These businesses frequently operate in a grey area of regulation, making it difficult to opt-out.
Data, Identification, And The ‘Why’ Behind Consumer Behaviour
This has huge ramifications. You don’t have the same old data points in this virtual identity or profile. It defines who you are as a person, not just a consumer. It’s more than just a description of what you do; it may explain why you do it.
What’s next? A considerable amount of so-called free will can be purchased for a price. As a result, advertisers can pay directly for the desired behavioral effect.
Tim O’Reilly was correct when he said that the Wanamaker Problem had been solved: Half of your marketing dollars are squandered; you just don’t know which half of your marketing dollars. A natural conclusion is that as marketing improves, we seem to have less control over our lives.
It depicts a dark and bleak future. As I mentioned in a recent essay, whoever controls your data also controls your decisions. Your data is your online domain in the digital world. Cambridge Analytica was neither the first nor the last corporation to take advantage of the newfound power of big data by purposefully limiting our alternatives.
The incentive structure of Web2 is at the heart of this dilemma. “You as a product” has become the central theme of our digital universe. A classic illustration of this is the proliferation of free, low-cost, and easy-to-use software that we’ve come to rely on.
The firms behind these apps and web3 decentralized content are very aware of how pervasive their apps have become in our daily lives, from work to socializing. They have no desire to alter the status quo.
Greater Mastery Over One’s Own Identity
Web3 decentralized content mission is to find solutions to these and other issues. You own your data in a user-owned Web 3.0 decentralized content. You have some control over who sees it and what happens to it, but you also have the opportunity to get more control over the algorithms and ensure that your private data is only accessible by you, whether in the form of emails or direct messages saved files.
Decentralized or self-sovereign identities are a good place to start. Our digital identities are currently held by our devices and/or third-party apps in current web paradigms. Many sources are mining our data, making it difficult for us to keep track of it all.
To check the full program of the event: https://t.co/Cq3p1JE8g2
— Web3 Foundation (@Web3foundation) July 20, 2022
With decentralized identities, our digital identity is stored in a single location, in our wallets, and we have complete control over who sees it.
For example, to sign up for anything on the internet, we must first create an account with the service provider. This is always the case whether making an online purchase or joining an email newsletter. You must supply personal information every time you open a new account.
The average email address in the United States is linked to 130 different accounts. When your data is dispersed in this manner, it is impossible to maintain track of it. You can control the flow of information by using decentralized identities. Web3 decentralized content identities in wallets allow users to limit the information that is shared and used for authentication to only the necessary information.
We can create the groundwork for Web 3.0 decentralized content and data by creating a layer of decentralized identities (which can take any name and aren’t tied to your location until necessary). Whether a messaging app, the next Instagram, a project management tool, or the next Yelp, users may own the material, and algorithms can work for them rather than advertising.