Centralization and privacy risk – Web3 exec

David Holzman—a former military intelligence expert, author, White House adviser, and chief strategy officer of the Naoris decentralized security protocol—recently told Cointelegraph that centralized information systems invite attacks from state and corporate actors because of a single point of control.

“The whole problem with centralized systems is that there is a center,” Hoetzman said in an interview. According to the executive, the security of centralized systems is increasingly threatened by the development of artificial intelligence and quantum computers.

According to the Naoris executive, both threats can be mitigated. Decentralizing AI through blockchain adds human checks on AI, and quantum-proof algorithms can protect personal data. However, the threat of entrenched institutional power is still an issue, Holtzman said:

“I think humanity is due for a bit of a shake-up because in the last 50 years we've given a lot of power to institutions — not just the military. Corporations have an incredible amount of power in most Western countries now. They didn't have it in the 1950s and 1960s.

Decentralization of information systems has become a critical security problem as quantum computers threaten to break the encryption standards used in digital finance, banking, healthcare systems, and military intelligence.

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Decentralized fencing with paradigm-changing technology

Privacy-preserving blockchain protocols and institutions are exploring privacy-preserving solutions as the world becomes a reality in the future of pervasive artificial intelligence and scalable quantum computers.

Avidan Abitbol, ​​project director of the Data Ownership Protocol, recently told Cointelegraph that institutions will not adopt Web3 without privacy.

The Web3 executive said that opting for zero-knowledge authentication is a solution to protect data, which is otherwise onchain and highly vulnerable to tracking by threat actors.

Executives at decentralized AI developer Onikai expressed concerns about artificial intelligence products from large tech companies in November 2024.

The developers argue that decentralized AI is key to autonomy and ensuring that AI products work on behalf of individuals — not corporations or large institutions starting projects with closed-source code.

Evin McMullen, co-founder of Privado ID – a decentralized identity solution – also highlighted the risk of biometric data being exposed to centralized third-party service providers working with large tech companies.

According to the co-founder of Privado ID, choosing biometric identifiers means that sensitive information is available on a need-to-know basis and is completely under the control of the individual who owns the biometric information.

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