How Web3 Storage is Solving the Challenges of Data Privacy and Security
Tags: security, privacy, web3, decentralization
Published: 2023-10-03 10:25:35

---
title: How Web3 Storage is Solving the Challenges of Data Privacy and Security
published: true
date: 2023-10-01 04:30:09 UTC
tags: Security, privacy, Web3, decentralization
canonical_url: https://blog.spheron.network/how-web3-storage-is-solving-the-challenges-of-data-privacy-and-security
---

In today's digital age, data privacy, and security have become increasingly important concerns for individuals and organizations alike. With the rise of web-based applications and cloud storage, robust and secure data storage solutions have become paramount. Enter Web3 Storage, a revolutionary technology that is changing the game when it comes to data privacy and security. This article will explore how Web3 Storage addresses data privacy and security challenges and why it is becoming an increasingly popular choice for individuals and businesses.

## The Limitations of User Participation in Web 2.0 (Current Web)

We are currently in the era of [Web2](https://en.wikipedia.org/wiki/Web_2.0). One of its key features is the increased focus on user participation. Unlike in [Web1](https://en.wikipedia.org/wiki/Web_2.0#Web_1.0), where users could only consume information, Web2 allows users to actively contribute by creating content such as blogs, video tutorials, and more. However, there are some limitations to what users can do in this phase.

In Web2, users enjoy a wider creative range. They can build personalized websites and engage with various data types, enabling innovative solutions and services that were unimaginable in Web1. **Nevertheless, there's a significant caveat: major tech companies control the servers that host and store this data. In other words, while users can create and contribute data to the web, they don't have control over it. This results in a high level of centralization in web-based communication and data storage.**

Sharing content and generating data online is empowering but doesn't guarantee ownership. Web2 operates as a service with its own Terms and Conditions, and these terms are ultimately determined by big tech companies, giving them absolute control. This means that users cannot access the web without agreeing to these terms, whether they do so knowingly or unknowingly. As highlighted in our previous report, we have been slow to recognize the importance of online privacy, and our data, including clipboard contents, preferences, and browsing activities, are routinely shared with numerous websites and sold without much input from us.

## A Look at Web2 Security and Privacy

Web 2.0's data centralization significantly contributes to its increasing vulnerability to hacking and privacy breaches. This centralization can be understood in the context of how data is stored, managed, and controlled in Web 2.0 environments.

1. **Single Point of Failure:** Centralized servers act as a single point of failure. If hackers can breach the security of a centralized server, they can gain access to all the data stored on it. This is in contrast to decentralized systems, where data is spread across many nodes, making it more difficult for a single breach to compromise a significant amount of data.

2. **Large-Scale Data Breaches:** Centralized data storage systems are attractive targets for hackers because they often contain vast amounts of data. Gaining unauthorized access to such systems can lead to large-scale data breaches, impacting millions of users simultaneously.

3. **Data Control:** In Web 2.0, data control is often in the hands of a few powerful entities, such as tech giants like Google and Facebook. These companies not only store user data but also have the ability to monitor, manipulate, and monetize it. This concentration of power and data control can result in privacy concerns and potential misuse of user data.

4. **Limited User Control and Ownership:** Centralization also means that users often have limited control and ownership over their own data. Users' personal, shopping, and financial information is held by centralized entities, leading to a lack of agency for users over their own data.

5. **Dependence on Third-Party Security:** Users have to trust these centralized entities to keep their data secure. Users' data can be compromised if these entities fail to safeguard their systems adequately.

These factors make centralized systems more susceptible to hacking and privacy breaches. The need for more secure, decentralized systems that give users control and ownership of their own data is one of the driving forces behind the development of Web 3.0.

## As of September 2023, the current hacking statistics are

- 32% of UK businesses [reported](https://aag-it.com/the-latest-cyber-crime-statistics/) suffering an attack or breach between 2022-2023, with the number rising to 59% for medium businesses. **Nearly 1 billion emails were exposed** in a single year, affecting 1 in 5 internet users.

- [300,000 new malware](https://www.getastra.com/blog/security-audit/cyber-security-statistics/#:~:text=300%2C000%20new%20malware%20are%20created%20every%20day%2C%2092%25%20of%20which%20are%20delivered%20via%20email%20and%20have%20a%20detection%20period%20of%2049%20days.%20Statista%20reveals%20that%20the%20global%20Security%20as%20a%20Service%20(SECaaS)%20market%20is%20projected%20to%20reach%20more%20than%20%2422%20billion%20in%202026.%C2%A0) are created every day, 92% of which are delivered via email, and have a detection period of 49 days.

- [50,000 websites are hacked daily](https://digitalworldgiant.com/website-security/), and there is an attack on a website every 39 seconds.

- In Q3 of 2022, the countries that have [suffered the largest](https://aag-it.com/the-latest-cyber-crime-statistics/) increases in data breaches are China (4852%, amounting to 14,157,775 breached accounts), Japan (1423%, amounting to 1,246,373 breached accounts), and South Korea (1007%, amounting to 1,669,124 breached accounts).

- The total number of people [**affected by cyber attacks**](https://www.independent.co.uk/advisor/vpn/live-data-breaches-and-stats) **in 2023 is 346,758,345**.

- The [biggest breach in 2023](https://www.independent.co.uk/advisor/vpn/live-data-breaches-and-stats) to date is Twitter, with allegedly 235 million emails leaked.

- The [UK's biggest breach](https://www.independent.co.uk/advisor/vpn/live-data-breaches-and-stats) is 10 million JD Sports customers exposed, while the US's biggest breach is 37 million T-mobile customers affected.

- The number of potential records compromised in April 2023 is 1,920,000, in March it was 31,413,302, in February it was 25,342,580, and in January it was 288,082,463.

- The number of [personal records](https://www.independent.co.uk/advisor/vpn/live-data-breaches-and-stats#:~:text=Number%20of%20personal,finance%20sector%3A%20365%2C000) compromised by telecom providers is 46,700,836, in the healthcare sector, it is 9,249,000, and in the finance sector, it is 2,000,000.

## Web3 Storage: Envisioning a Decentralized Future for the Internet

Web3 Storage is a decentralized storage solution built on the principles of blockchain technology. Unlike traditional cloud storage providers that rely on centralized servers, Web3 Storage utilizes a distributed network of nodes to store and retrieve data and also uses other decentralized protocols like the [**InterPlanetary File System (IPFS)**](https://en.wikipedia.org/wiki/InterPlanetary_File_System) **and the** [**Secure Scuttlebutt (SSB) protocol**](https://en.wikipedia.org/wiki/Secure_Scuttlebutt#:~:text=Secure%20Scuttlebutt%20(SSB)%20is%20a,fault%20tolerance%20and%20eventual%20consistency.). These technologies are intentionally designed to reduce reliance on centralized intermediaries, resulting in user data being spread across a network of nodes rather than concentrated in a single location. This transformation holds the promise of significantly enhancing both user privacy and security.

## Three Core Principles of Web3 for Privacy and Security

1.**Data Ownership:** Web3 Storage technologies empower users to retain control over their data, allowing them to decide what information they share and with whom. 

In Web3 storage, the concept of data ownership is decentralized and distributed. Unlike traditional web-based storage systems where data ownership typically lies with the centralized service provider, Web3 storage aims to give users full control and ownership of their data. The ownership of the data is established through the use of cryptographic keys. Users have a private key that enables them to access and control their data. This private key is essential for encrypting and decrypting the data. Additionally, there is a corresponding public key that allows others to verify the authenticity and integrity of the data.

Since the data is distributed across multiple nodes, no single entity or organization controls the entire dataset. This decentralized approach enhances data security and makes it more resistant to censorship or tampering. Users can also choose where they want to store their data and which storage providers they trust. They can switch providers, revoke access, or make changes to their data easily by using their private key. This gives users full ownership and control over their stored information.

Web3 storage protocols, such as InterPlanetary File System (IPFS) or Filecoin, provide the underlying infrastructure for Web3 storage. These protocols ensure data integrity availability and incentivize network participants to contribute storage resources.

2.**Encrypted Communication:** Secure communication is a fundamental pillar of privacy in web3. Decentralized messaging platforms using Web3 Storage, like [Status](https://status.im/) or [Matrix](https://matrix.org/) employ end-to-end encryption to ensure only intended recipients can access message content.

This shields users from surveillance and data interception, delivering a more secure communication experience. In contrast to centralized platforms like Facebook Messenger, which has faced criticism for sharing user data with third parties, decentralized messaging apps prioritize user privacy by design. For example, Signal - an encrypted messaging app, has gained popularity due to its unwavering commitment to privacy, receiving endorsements from prominent figures such as Edward Snowden and Elon Musk.

3.**Trustless Transactions:** In the Web3 storage landscape, trustless transactions are facilitated through [smart contracts](https://en.wikipedia.org/wiki/Smart_contract) programmable agreements that execute automatically when predefined conditions are met. Platforms like Ethereum enable the development of decentralized applications (dApps) that harness these smart contracts, eliminating the need for intermediaries and reducing the risk of fraud or manipulation.

For instance, decentralized finance (DeFi) platforms like Compound and Aave utilize smart contracts to enable users to lend and borrow cryptocurrencies without relying on traditional financial institutions. This streamlines the process and bolsters security by eradicating single points of failure.

## How are businesses using Web3 storage technologies?

Businesses increasingly adopt Web3 technologies such as blockchain and decentralized storage solutions to improve their operations, enhance security, and reduce costs. Here are some examples of how different sectors are utilizing Web3 storage and applications:

1. **Finance:** Blockchain technology is being widely adopted in the finance sector for various use cases such as cross-border payments, trade finance, and digital assets management. Decentralized exchanges (DEXs) like [Uniswap](https://uniswap.org/) and [SushiSwap](https://www.sushi.com/) have gained popularity, allowing users to trade cryptocurrencies trustless and permissionless.

2. **Healthcare:** Web3 technologies are being explored in healthcare to securely store and share medical records, clinical trial data, and prescriptions. [Medicalchain](https://medicalchain.com/en/), for example, has created a decentralized health record platform that allows patients to securely store and share their medical history with healthcare providers and researchers.

3. **Identity Verification:** Self-sovereign identity (SSI) solutions built on blockchain technology enable individuals to control their personal information and maintain privacy. [Estonia, for instance, has implemented a national ID system](https://e-estonia.com/solutions/e-identity/id-card/) based on blockchain technology, allowing citizens to access public services and vote online securely.

4. **Gaming:** The gaming industry has embraced non-fungible tokens (NFTs) and blockchain-based platforms to create unique virtual assets and experiences. Games like [CryptoKitties](https://www.cryptokitties.co/), [Decentraland](https://decentraland.org/), and [Roblox](https://www.roblox.com/) allow players to own and trade NFTs, creating new opportunities for monetization and user engagement.

5. **Real Estate:** Blockchain technology is being applied to real estate transactions, enabling faster, more secure, and transparent property deals. Platforms like [Propellr](https://www.propellr.com/) and [Rarible](https://rarible.com/) allow investors to purchase fractional ownership in properties through tokenized assets, opening up new investment opportunities.

6. **Energy Trading:** Web3 energy trading platforms like [Power Ledger](https://www.powerledger.io/) and [WePower](https://www.blockdata.tech/profiles/wepower) enable households and businesses to buy and sell excess renewable energy directly, promoting sustainability and reducing reliance on centralized power grids. These platforms also provide a more efficient way to manage energy distribution and settlement processes.

7. **Social Media:** Decentralized social networks like [Mastodon](https://mastodon.social/explore), [Elasticsearch](https://www.elastic.co/) are gaining traction, offering users greater control over their data and content. These platforms prioritize user privacy and security, eliminating the need for targeted advertising and data mining.

8. **Intellectual Property:** Artists and creators are turning to blockchain technology to protect intellectual property rights and monetize their work. Platforms like [Audius](https://audius.co/), [OpenSea](https://opensea.io/), and [SuperRare](https://superrare.com/) allow artists to mint and sell NFTs representing exclusive digital artwork, music, and collectibles.

9. **Cybersecurity:** With the rise of remote work and cloud computing, cybersecurity threats have increased. Web3 technologies offer novel solutions to mitigate these risks. For example, decentralized authentication systems like [uPort](https://www.uport.me/) and [OAuth](https://oauth.net/) replace traditional username-password combinations, providing safer and more convenient access control.

10. **Decentralized Web Hosting and Storage Platform -** Decentralized web hosting and storage platforms allow users to host and store their data in a distributed and decentralized manner. A platform like [Spheron Network](https://spheron.network/) is a next-generation PaaS that offers low-cost and seamless access to Web3 infrastructure across multiple chains. It is explicitly designed to serve a broader audience, including startups, developers, and organizations looking to scale their infrastructure.

By combining IPFS storage, Filecoin, and Arweave, Spheron ensures a seamless yet affordable experience. In addition to web hosting, compute, and storage capabilities, Spheron offers many features to enhance productivity and enable stakeholders to reach new heights while prioritizing privacy, security, and reliability.

These are just a few examples of how Web3 technologies are transforming various industries. As adoption grows, we can expect even more innovative applications across diverse sectors, leading to improved efficiency, security, and user experience.

## New Privacy-Enhancing and Security Technologies Developing in Web3

In 2023, Web3 has seen the development and introduction of various privacy-enhancing and security technologies. These advancements aim to address the growing concerns around data privacy and security in the decentralized web. Some of the key technologies and trends include

1. **Privacy Enhancement Technologies and Zero Knowledge Proof:** Web3 is leveraging technologies like [zero-knowledge proofs](https://en.wikipedia.org/wiki/Zero-knowledge_proof) to enable privacy-preserving transactions and interactions. Zero-knowledge proofs allow users to prove the validity of a statement without revealing any additional information, ensuring privacy while maintaining trust.

2. **Privacy Enhanced Search Engines:** Web3 is exploring the development of [search engines](https://web3compass.net/) that prioritize user privacy and do not track or store personal information. These search engines aim to provide relevant search results while protecting user data.

3. **Secure Multi-Party Computation (MPC):** Secure [Multi-Party Computation](https://en.wikipedia.org/wiki/Secure_multi-party_computation) enables multiple parties to jointly compute a function on their private inputs without revealing those inputs to each other. MPC ensures privacy and security in decentralized applications (dApps) by allowing computations to be performed on encrypted data. Projects like [Enigma](https://scrt.network/) and [Keep Network](https://keep.network/) are working on implementing MPC in Web3.

4. **Homomorphic Encryption:** [Homomorphic encryption](https://en.wikipedia.org/wiki/Homomorphic_encryption) is a cryptographic technique that allows computations to be performed on encrypted data without decrypting it. This technology enables privacy-preserving data processing in Web3 applications. Projects like [NuCypher](https://www.nucypher.com/) and [Microsoft SEAL](https://en.wikipedia.org/wiki/Microsoft_SEAL) are exploring the use of homomorphic encryption in decentralized systems.

5. **Decentralized Identifiers (DIDs):** DIDs are a standard for creating and managing self-sovereign identities on the internet. DIDs enable users to have control over their personal data and selectively share it with others while maintaining privacy. The [W3C Decentralized Identity Working Group](https://www.w3.org/2019/did-wg/) is actively developing and standardizing DIDs.

6. **Secure Enclaves:** Secure enclaves, such as Intel SGX and AMD SEV, provide hardware-level isolation and protection for sensitive computations and data. They allow developers to build secure and privacy-preserving applications by running critical parts of the code in a trusted execution environment. Projects like **Oasis Network** are utilizing secure enclaves to enhance privacy and security in Web3.

7. **Privacy Coins:** Privacy coins, like [Monero](https://www.getmonero.org/) and [Zcash](https://z.cash/), aim to provide anonymous and untraceable transactions on blockchain networks. These cryptocurrencies utilize advanced cryptographic techniques, such as ring signatures and zero-knowledge proofs, to shield transaction details and maintain user privacy.

## Conclusion

The rise of web3 represents a significant shift in how we engage with the Internet, offering a decentralized alternative to the prevailing centralized model. Web3 Storage enables enhanced user privacy and security by utilizing blockchain technology, positioning itself as a transformative force in the digital landscape. Although obstacles persist, the prospect of web3's widespread adoption looms large, particularly as individuals and organizations increasingly value data protection and safety in their online activities. As this trend continues, embracing Web3 Storage may soon become a desirable choice and a requisite for effectively navigating the internet of tomorrow.