The Problem with Centralized Systems
As a former military intelligence professional, author, White House adviser, and chief strategy officer of the Naoris decentralized security protocol, David Holtzman has spent years studying the threats posed by centralized data systems. According to him, these systems invite abuse from state and corporate actors due to their single point of control.
"The whole problem with centralized systems is that there’s a center," Holtzman said in an interview with Cointelegraph. "This concentration of power creates vulnerabilities that can be exploited by malicious actors."
The Security Threats Posed by Artificial Intelligence and Quantum Computers
The security of centralized systems is further threatened by advances in artificial intelligence (AI) and quantum computers. AI has the potential to automate tasks, but it also poses a threat to human control and decision-making. Similarly, quantum computers have the power to break even the most secure encryption standards, putting sensitive data at risk.
Holtzman notes that these threats can be mitigated through decentralization: "Decentralizing AI through blockchain adds a human check against AI, and quantum-resistant algorithms can shield private data." However, he also warns 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," Holtzman said. "Corporations have an astonishing amount of power in most Western countries right now that they didn’t have in the 1950s and 1960s."
Decentralization as a Hedge Against Paradigm-Shifting Technology
As quantum computers become more powerful, they will be able to break even the most secure encryption standards. This poses a significant threat to digital finance, banking, healthcare systems, and military intelligence.
Decentralizing data information systems has become a critical security problem, and experts are exploring privacy protection solutions to address this issue. Avidan Abitbol, project director for the Data Ownership Protocol, notes that institutions will not adopt Web3 without prioritizing privacy:
"Institutions will not embrace Web3 if it doesn’t prioritize user data and ensure that sensitive information is protected," Abitbol said in an interview with Cointelegraph.
Selective Disclosure through Zero-Knowledge Proofs
One solution to protecting data is selective disclosure through zero-knowledge proofs. This allows individuals to share only the information necessary, while keeping other details private.
How Decentralized AI Can Ensure Self-Sovereignty
Decentralized AI developer Onicai has expressed concerns over AI products from Big Tech companies. According to them, decentralized AI is key to ensuring that AI products work for individuals — not corporations or large institutions launching projects with closed source codes.
Evin McMullen, co-founder of Privado ID, a decentralized identity solution, highlighted the threat of biometric data exposure to centralized third-party service providers working with Big Tech companies. 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.
The Threat of Biometric Data Exposure
The increasing use of biometric data has raised concerns over its security and exposure to unauthorized parties. McMullen warns that centralized service providers can pose a significant threat to individuals’ sensitive information:
"Their business model is to collect as much data as possible, including biometrics, and then sell it to third-party companies," McMullen said in an interview with Cointelegraph.
The Future of Data Security
As we move forward, experts predict that decentralized systems will become increasingly important for protecting sensitive information. Decentralized AI, blockchain protocols, and institutions are exploring solutions to address the security threats posed by centralized systems.
However, implementing these solutions will require a fundamental shift in how institutions approach data security. As Holtzman notes:
"We need to fundamentally rethink our assumptions about data ownership and control. We can no longer rely on centralized systems that put individual freedoms at risk."
Conclusion
The threat of centralized data systems is real, and experts warn that it poses significant risks to humanity’s future. By exploring decentralized solutions such as blockchain protocols, institutions can mitigate the security threats posed by AI and quantum computers.
As we move forward, it is essential to prioritize user data protection and ensure that sensitive information is kept private. The time has come for a "shakeup" in how institutions approach data security, and decentralization will be key to addressing the challenges of paradigm-shifting technology.
Recommendations
- Institutions should adopt decentralized solutions such as blockchain protocols to protect sensitive data.
- Decentralized AI can ensure self-sovereignty and prevent exploitation by large corporations or institutions.
- Selective disclosure through zero-knowledge proofs is a viable solution for protecting biometric data.
- Experts predict that decentralized systems will become increasingly important for protecting sensitive information in the future.
