If there is one thing we have learned in recent years, it is that user protection does not update automatically as technology evolves, but requires intentional effort and planning.
Without this dedication from the start, the development of a technology can lead to significant and far-reaching consequences. In fact, the blockchain has already experienced the consequences of poor attention to user rights.
In 2017 and 2018, the sudden increase and subsequent decline in ICOs provided a case study regarding the consequences of fraud, unsustainable business models and significant losses for less experienced consumers.
A 2018 study identified more than 80% of the ICOs presented in 2017 as scams. This potential for misuse attracted the attention of legislators and politicians, but in many cases it was too late.
What's at stake?
This new wave of development offers us the opportunity to correct the shot. If companies did not invest in this direction, technology would face several existential problems:
Risks for users. It is now known that the safety and protection of users must be considered in the initial development phase of a technological enterprise, in particular as regards data. Blockchain as basic technology is particularly responsible for these aspects, given the damage and the effects that could derive from potential violations.
Decentralization can be weakened. Those who have a greater weight within the new technological infrastructures, either for the value of their investments or for their knowledge on the subject, could intentionally damage users or influence the market with anti-competitive actions. This behavior would weaken the premise of decentralization, which was created to provide resistance to censorship, privacy and a level playing field for competitors.
Expand existing gaps. Despite talking about the potential for financial inclusion, if not carefully designed, Blockchain can lead to further exclusion and exploitation of vulnerable populations by stronger global economies.
What can you do?
As with any technology, the future of Blockchain will depend on individual decisions made about strategy, development and implementation. This is why the Global Blockchain Council of the World Economic Forum is creating a "Blockchain Bill of Rights: Design principles for a decentralized future".
The document was co-designed by some of the leading industry leaders.
The aim is to align private sector leaders, policy makers and consumers in a fundamental vision of how users can and should be protected in the evolution of blockchain technology, in particular around the following pillars:
- Industry presence and interoperability: the right to own and manage data.
- Privacy and security: the right to data protection.
- Transparency and accessibility: the right to information on the system.
- Responsibility and governance: the right to understand the appeal available.
We hope that citizens, policy makers and technology users will be able to take advantage of these principles as soon as possible while using the systems that power our societies.
