Did you know that Facebook makes up to $900 every year by selling your data? Yes, that’s the amount for a single user. Facebook (Now Meta) has over 2.85 billion users globally. This means the world’s biggest social media platform makes over $2,500 billion dollar annually just by selling user data. According to a survey by data privacy company LetAlone, users in the UK would want only £250 per year for that data, which is just 25% of what Facebook makes from that data. However, all of the data is going to the platform for free. Effectively, it is the platform in control of user data. Web3 Projects are here to change the existing process of data monetization. Data security is one of the key principles of the Web3 economy, and it is only going to benefit the users.
How Do Social Media Companies Use Your Data
Most of us simply agree to the terms & conditions while signing up to a platform like Meta or Twitter without caring to give it a read. Unlike you, we have gone through the terms and conditions of these platforms to understand what data they collect from the users, and the list goes on and on. The chart below explains what social media platforms collect from users.
| Name | Name |
| Phone Number | Username |
| Email Address | Password |
| Payment Information | Phone number |
| Stored videos and photos | Emails you communicate with |
| Photo and file metadata | Device IP address |
| Device IP address | Browser and device type |
| Networks and connections | Operating System |
| Messages | Carrier name |
| Content | Messages |
| Videos watched | Content |
| Views and interactions with Ads | Videos watched |
| Activity duration and frequency | Views and interactions with Ad |
| People you communicate with | Video and audio information |
| Device sensor data | Activity duration and frequency |
| People user communicate with | |
| Activity on third-party apps & sites | |
| Browsing history | |
| Privacy settings | |
| Time zone | |
| GPS location |
When the primary challenge for users is to prevent the misuse of their data, monetization takes the backseat. There are options, like VPN, that can help you protect your data to a great extent. But we are talking about millions of common users here.
Facebook makes $37 billion by selling user data from UK alone. The number is way higher for US. 57% of US users are angry that Facebook and other platforms are sharing their data without permission. Most importantly, their data is being sold to other platforms for targeted marketing and users are frustrated about it as the trust comes to light. Web3 projects emerge as a ray of hope for all these users who want to safeguard their data and even earn from it by sharing selected information with their consent. This might sound like news to you, but companies are willing to pay millions of dollars to get access to user data. In the age of digital marketing and prospering e-retail, data is everything. That’s why companies like Facebook and Twitter share the data of their users with different companies to make money.
Can Web3 Projects Really Safeguard Your Data
As of now, companies like Google and Facebook probably know more about you than you. They have access to historical data that can be used to derive user behaviour. User behaviour is a critical part of targeted marketing, where brands show ads and recommendations based on the interests of a particular user. There’s a very famous saying- “If it is free, you are the product.” The statement sums up online marketing in the age of Web 2.0. Web3 projects are helping us reimagine data security by putting users in control of their data.
To simplify, Web3 aims to reverse the damage done by previous iterations of the internet simply by turning users into consumers from products. Unlike the existing protocols that are centralized, Web3 is on its way to establishing a decentralized framework where the focus is on incentivizing the developers and the users, instead of the platform. Users in US and UK already have a rough number in mind for sharing their data with a platform. Let’s dive deeper into the features of Web3 to understand how it can enhance data security.
What Are The Key Features Of Web3.0
Decentralization: In Web 2.0, which is the current iteration of the internet, files are stored on a single server in a decentralized server owned by a certain company. Such a centralized framework leads to a monopoly over data sharing and management. Now take the case of DAOs (decentralized autonomous organizations), where multiple participants have voting rights. Web 3.0 aims to create a similar framework for the internet, where users can decide on what data they want to share and with whom. This is a direct challenge to the monopoly of players like Meta, Google, and Twitter. A decentralized network that Web3.0 aims to create will ensure the users can retain ownership control.
Trustless and Permissionless: There are numerous platforms that require users to input their credentials to use the platform and communicate with other users. Some even charge a platform fee for sharing exclusive content. Web3 will be trustless and permissionless. Meaning the participants can interact with each other without any intermediary. So you are sharing data with only the individuals you want to as the data ownership lies with the user in such a framework. Such a framework functions without a centralized governing body and hence, monitoring or data capturing is out of question.
Semantic Web: Companies need data to understand behaviour. Web3 goes one step further to power a network that userstands humans. That’s what a semantic web is. It allows users to create, share, and link material through search and analysis. Meaning the search and analysis capabilities of the next generation of the internet are going to be way better.
Connectivity and Ubiquity: 100% uptime is another key feature of Web3. Remember the recent Meta outage where millions of users struggled to connect to their accounts for hours? Emerging Web3 projects could emerge as a feasible solution to such a problem. The fact that Web3 never sleeps is a critical differentiator. Capitalizing on semantic metadata is at the core of Web3 projects out there as it establishes new benchmarks for connectivity. To simplify, Web3 will create an environment where one can use the internet without any restrictions.
Bottom Line
To begin with, Web3 projects will pave the way for creation of a decentralized and fair internet where users control their data. Again, DAO is at the core of the evolving Web3 concept. Therefore, all business rules and transaction rules are completely transparent. Protection of data privacy is the low hanging fruit. Monetization comes afterward. With cryptocurrencies in the equation, earning for sharing your data becomes more convenient. Web3 is continuously evolving and a lot has to be done for it to achieve mainstream adoption. Despite all the challenges, Web3 projects have the potential to stop the misuse of consumer data by online platforms.