The State of Privacy in Web3 ID & Reputation
Ronni K. Gothard Christiansen
Creator @ AesirX | Empowering Digital Privacy with First-Party Analytics & Consent Management Solutions | 25+ Years Open Source Advocate | Privacy Champion
Recently, RnDAO published a comprehensive landscape of over 60 Web3 projects focused on identity and reputation . These projects are integral to building trust and credibility in the rapidly evolving digital space to protect consumers and ensure a secure and compliant handling of their identity and personal data. However, as the technology advances, so do the privacy and compliance challenges.?
This article delves into the current state of privacy in Web3 identity and reputation management, revealing significant issues uncovered through comprehensive privacy scans using the AesirX Privacy Scanner. It is imperative to address these concerns to ensure a secure and trustworthy digital future and maturity in the application of blockchain technology.
The Importance of Decentralized ID and Data Ownership
The importance of decentralized identity (ID) and data ownership cannot be overstated. Decentralized ID empowers individuals to control their digital identities across various platforms, enhancing privacy and security by reducing reliance on centralized authorities prone to breaches and misuse. It ensures that personal data remains under the individual's control, fostering trust and transparency. This paradigm shift not only protects user information but also supports a more secure and equitable internet where users, not corporations, have ownership and autonomy over their data.
Using the AesirX Privacy Scanner , I conducted privacy scans on all these projects to evaluate their compliance with data privacy and protection regulations. The findings reveal significant issues that need addressing to ensure user trust and legal compliance.
Common Privacy Issues Found
Many projects in the Web3 ID and reputation landscape are inadvertently or deliberately compromising user privacy. Here are the key issues identified:
Third-Party Services Without Consent:
Media and Interaction Tools:
WalletConnect Usage:
Systematic Data Abuse:
Detailed Scan Results
Here are the detailed results of the privacy scans categorized by risk level with direct link to the scan result:
Medium/High Risk - Beacons loaded with no active informed nor explicit consent and in violation of GDPR and ePrivacy Directive:
High Risk - Cookies + Beacons loaded with no active informed nor explicit consent and in violation of GDPR and ePrivacy Directive:
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High Risk - Cookies + Beacons - Could not scan due to Cloudflare error with EDPS Inspection Tool:
Low/Medium Risk (Clean / First-Party / Data-Minimization):
Low Risk: for reference as number 65, beyond the 64 from the landscape, AesirX:
These scans were conducted using the European Data Protection Supervisor (EDPS) Inspection Tool through our AesirX Privacy Scanner. The results highlight a pervasive issue: many Web3 projects fail to comply with basic data privacy regulations, exposing themselves to significant legal and reputational risks.
Should you read this as one of the 64 projects we scanned where only 12 including AesirX was found to be compliant, you are welcome to reach out or you can also use our privacy scanner and then ask our AesirX Privacy Advisor AI what is wrong and how to resolve the problems.
The Importance of AesirX Shield of Privacy
AesirX Shield of Privacy offers a privacy-focused pseudonymization solution, essential for reclaiming privacy as a consumer. Unlike other ID projects mentioned, we are live with our unified AesirX Analytics & Consent Solution , featuring the world's first Decentralized Consent & Data Ownership model. This solution can be installed with a single click in WordPress , connecting to 50% of the world wide web.
AesirX Shield of Privacy can be used to access websites and ecommerce solutions, providing age and country verification for effective age control and protection of users and communities through our AesirX Single Sign-On solution, also available for WordPress. For instance, if you run a WordPress + WooCommerce online store selling alcohol in Denmark, you can utilize our Unified Analytics + Consent solution and Single Sign-On to ensure that any user accessing the site is 18 or older and a resident of Denmark.?
As a Danish citizen, you can use the national eID (MitID) to create ID Credentials + Wallet on Concordium and then, with one click, create your Shield of Privacy with full support for indirect zero-knowledge verification of age and country for any citizen in Denmark aged 13 or older. This ensures compliant consent while utilizing a privacy-by-design data model optimized for data minimization and cross-border compliance. Instead of collecting and sharing your personal information our Shield of Privacy is the additional layer to protect you online, also on Web3.
State of Privacy?
Since when did offering Identity and Reputation Web3-based solutions also mean you can collect and share your users' personal data from their devices with third parties without any form of informed or explicit consent? It is astonishing to see projects within the identity and reputation sector disregarding fundamental privacy laws and principles.
Some projects load over 35 third-party cookies and beacons before obtaining user consent. This practice is not only a breach of GDPR and the ePrivacy Directive but also contravenes newer privacy laws in several US states and many other countries. It is perplexing how companies in the ID and reputation industry can fail to grasp fundamental data compliance regulations.
The negligence displayed by these projects poses a serious question: How can businesses claim to manage digital identities and reputations when they fail to respect user privacy and legal obligations? The blatant disregard for privacy laws is not only unethical but also dangerous, leading to potential legal ramifications and loss of user trust.
Compliance is a Requirement!
The findings from these privacy scans reveal a disturbing trend: many Web3 projects neglect fundamental privacy and compliance requirements. This negligence not only undermines user trust but also exposes these projects to severe legal and reputational risks. It is alarming that companies claiming to manage digital identities and reputations are failing to respect basic privacy laws.
Compliance is a requirement! The critical need for Web3 projects to prioritize data privacy and compliance cannot be overstated. It is not just about avoiding fines and legal issues but about building and maintaining trust with users. As the digital landscape evolves, companies that prioritize privacy by design will stand out as leaders in the industry, setting a new standard for ethical and compliant data practices.
The current state of privacy in Web3 identity and reputation projects is alarming. Immediate action is required to address these deficiencies, and it is imperative for these projects to understand that respecting user privacy is non-negotiable. They must embrace privacy by design principles, ensuring compliance with global data protection laws to truly earn and maintain user trust. Only by doing so can they truly earn and maintain the trust of their users, setting a new standard for ethical and compliant practices in the digital age. The time to act is now; privacy and compliance are not just legal obligations but cornerstones of a trustworthy and secure digital ecosystem.
Ronni K. Gothard Christiansen // VikingTechGuy ?
Creator, AesirX.io
Join our community and catch up with all the latest information and news on Telegram https://t.me/aesirx_official_community ?
About the AesirX Privacy Scanner:?
The AesirX Privacy Scanner is a powerful tool designed to ensure that websites comply with the stringent requirements of the ePrivacy Directive and GDPR. Using the EU's EDPS (European Data Protection Supervisor) Inspection Tool , AesirX Privacy Scanner thoroughly scans websites to identify non-compliant elements, including cookies, trackers, and beacons.?
AesirX also offers a free Privacy Advisor AI Assistant that helps to explain the scanned results from the EDPS Inspection Tool and offers concrete recommendations on what is needed to resolve compliance issues found in your scan result.?
By utilizing these tools, your businesses can receive detailed reports and actionable insights to rectify compliance issues and avoid potential fines.
Creator @ AesirX | Empowering Digital Privacy with First-Party Analytics & Consent Management Solutions | 25+ Years Open Source Advocate | Privacy Champion
3 个月The following projects (who are on Linkedin) all had 10+ up to 36 Beacons and Third-Party Cookies loaded collecting and sharing personal information, before any form of user consent has been given (in order of findings from highest to lowest): Spatium Feeless Wallet SelfKey Foundation Coreto.io Indicio Combot Nuggets rep3 Global Legal Entity Identifier Foundation (GLEIF) Trinsic Privado ID (Formerly Polygon ID) Civic Technologies TogetherCrew Dock Worldcoin not very well done, you need to do better.
Creator @ AesirX | Empowering Digital Privacy with First-Party Analytics & Consent Management Solutions | 25+ Years Open Source Advocate | Privacy Champion
3 个月Only 11 projects + AesirX stood out as low risk / clean, those on linkedin are: CoinRadar Relinkd ONCHAINID IdentiKey BrightID IAMX AG Concordium Quadrata, Inc. - Well done!
Creator @ AesirX | Empowering Digital Privacy with First-Party Analytics & Consent Management Solutions | 25+ Years Open Source Advocate | Privacy Champion
3 个月Thanks to RnDAO for the landscape overview; we hope you will add us as number 65 and appreciate our contribution to highlight how important privacy is for Web3 Projects in the ID and Reputation space.