Web3 experts warn of threats to privacy in centralised systems

Centralised information systems pose a growing risk to privacy and security, exacerbated by advancements in artificial intelligence and quantum computing, according to Web3 leaders.

David Holtzman, a former military intelligence officer and chief strategy officer at Naoris decentralised security protocol, highlighted these vulnerabilities.

"The whole problem with centralised systems is that there's a center," Holtzman noted, emphasising the susceptibility of such systems to abuse by state and corporate actors.

He warned that centralised models act as a "honeypot" for threat actors leveraging AI and scalable quantum computers.

Holtzman suggested that decentralising data and using quantum-resistant algorithms could mitigate some risks.

He explained that decentralised systems introduce human checks against AI misuse and can better shield private data from emerging technological threats.

However, he cautioned that institutional power remains disproportionately concentrated.

"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.

Corporations have an astonishing amount of power in most Western countries right now that they didn't have in the 1950s and 1960s," Holtzman added.

The growing capabilities of quantum computers threaten encryption standards used in sectors like banking, healthcare, and military intelligence.

Experts stress that decentralisation could serve as a hedge against these paradigm-shifting technologies.

Avidan Abitbol, director of the Data Ownership Protocol, advocated for selective disclosure through zero-knowledge proofs to ensure data privacy in Web3 systems.

Similarly, developers at decentralised AI firm Onicai stressed the importance of decentralised AI to maintain individual control over technology, countering proprietary AI systems from major tech companies.

Evin McMullen, co-founder of Privado ID, warned against centralised handling of biometric data, arguing for systems that grant individuals full control over their sensitive information.

Selective disclosure, McMullen explained, allows users to share only essential biometric identifiers, minimising exposure to third-party entities.