The Jetsons, a futuristic animated family from the 1960s, led lives seamlessly integrated with technology, never having to fill out forms or wait in lines to express their preferences. This vision, rooted in user-owned data, is precisely what Disco, a metaverse company, aims to bring to reality.
The value of data in the digital world cannot be overstated, as it serves as the foundation for an individual’s online identity. Disco’s driving force is to empower users to regain control of their data, thereby moving it from isolated, company-owned platforms to digital wallets owned by individual users. However, seducing consumers away from the convenience provided by single sign-on services proves to be a challenging task.
Nonetheless, Disco is tapping into gamification, status, and financial incentives to help people better comprehend the potential of Web3 and inspire them to reclaim control of their data. The company has made its merchandise free for users who earn it while setting prohibitively high prices for everyone else.
While blockchain technology is essential in defining user-owned identity, not all consumer data should exist on it. Instead, a wide range of cryptographic tools should be employed to provide token-gated experiences without requiring all information to be published as an immutable token. One such tool, known as a verifiable credential, provides an off-chain alternative for authenticating consumer data without making it public.
By using verifiable credentials, users can protect sensitive information from being disclosed unnecessarily, reducing the risk of discriminatory practices. To familiarize consumers with these concepts, Disco has opened its API to beta testers, allowing them to create user-owned “data backpacks” containing credentials that can be shared or kept private.
However, Disco’s process of earning merchandise might appear cumbersome compared to more established social media platforms. Yet, learning to navigate these new platforms is essential to avoid storing personal information on the blockchain, an “expensive overshare” that comes with high service fees.
Existing legal frameworks—such as the Child Online Privacy Protection Act and European Union’s General Data Protection Regulation—outline what information should be stored online. Early Web3 builders must accept the responsibility to handle data sensitively and prioritize consent-first data approaches.
Contrary to the popular belief that blockchain can remedy all consumer privacy issues, it is merely a distributed database of information. Disco’s mission highlights the importance of understanding and deciding what should and should not be stored on the chain, ensuring that users have control over their digital identities before these decisions are made on their behalf.
Source: Coindesk
