Reflections on a Decentralized Future

“The future is here it’s just not evenly distributed.” – William Gibson

This quote may be interpreted several ways: that the future may not be the same for all, that inequalities of tomorrow may be similar to those of today, or that what is change to some may not be change to many; that ideas that seemingly niche become more pervasive over time. We don’t have to wait for the future to present itself – it is happening now.

As a technology professional I like to consider this in the context of the internet and digital data. By design, the internet was meant to share raw information between parties. Conversely, it was not designed to share value (transactional exchange). This is why to make available the ability to buy goods, sign documents, or to use most websites for that matter requires users to create accounts with 3rd party identity services and payment processors. These 3rd parties ‘protect’ users’ personal data by keeping it stored elsewhere.

The ever-increasing amount of digital data and services has greatly increased the value of that data without concern for the sensitivity of its access. In recent years we have also seen the hacks of Equifax, Adobe, Marriot and many others that beg the question, is there a better way to store and exchange this information?

Those that have been following peer-to-peer technologies or developments in the digital identity space know where this is going: enter blockchain.

Blockchain technology and the automated code capabilities of ‘smart contracts’ build on decades of academic research in consensus algorithms and distributed systems. Its cryptographic underpinnings are being evaluated by firms large and small alike as mechanisms to protect and obfuscate data on a precise and granular level. When sharing data, it can be encrypted with the keys of only the recipient, meaning only they will be able to read it. In principle, this means that hackers could break into an enterprise server yet would still not have the means to access any data inside. Users would have the assurance of knowing they decide who can access what data and for how long. Companies become the service providers allowing data owners to exchange directly peer-to-peer with one another. They provide the services but cannot access the underlying data without requesting access from the owner(s).

Today’s users of the internet, along with all of their Personally Identifiable Information (PII), remain at risk until hackers are no longer tempted to steal information or that same information becomes practically unobtainable. It is my hypothesis that decentralized data services should start to gain traction with the proliferation of Self-Sovereign Identity (SSI) platforms, or platforms that establish a decentralized blockchain-based identity at a fundamental level. These platforms, such as Evernym and uPort, put the user at the wheel by letting him or her decide with whom to share data and for how long.

Decentralized data ownership is lucrative especially considering the extractive nature of many technology businesses today. There remain many epic operational and technological challenges as well as questions to answer as enterprises continue to learn about cryptography, SSI, and other useful applications of peer-to-peer and blockchain technology. Are users wanting and ready to take responsibility over their digital data? Can they be trusted to manage their own cryptographic keys? What infrastructure must be put in place before digital credentials are accepted by the mainstream? What types of business models can be applied to work across ecosystems? All of this and more being tried as this technology space blossoms. The SSI ecosystem in particular is growing quickly and iterating on W3C standards such as the decentralized identifier (DID) and the Verified Claim object at voracious speed.

The successful technology platforms and ecosystems of the future will not own data but will allow data owners to exchange directly with each other while likely charging fractions of a penny per transaction. Maybe the technology of the future is evenly distributed.