With users owning and being compensated for their data, WEB 3.0 promises a new level of control over personal information. However, with this new paradigm comes a host of myths and misconceptions.
Why am I talking about this? I'm the CBDO of the Adtech video platform for publishers Viqeo and CEO and co-founder of OTM — the platform is based on its own technological developments, which set up the process of automating and planning the procurement of online advertising, a 30 million dollar company.
OTM's patented MarTech and AdTech products and solutions have been deployed at companies such as Google, Pepsi-Co, Nestle, FIFA, Nissan, Unilever, and more.
I believe that my expertise will help to understand the myths and realities related to privacy in WEB 3.0, including decentralization, user experience, and trust.
Debunking Privacy Myths and Exposing the Truths
Myth 1: Web 3.0 Is Entirely Decentralized
WEB 3.0 is empowering users with complete control over their data and preventing advertisers from collecting personal information for marketing purposes.
Reality: In WEB 3.0, users manage their data and decide which data to share with whom. However, this also means added responsibility for the users, as they can decide what information they want to share
Furthermore, companies can interact with users at a new level. They can still collect data, but they would need explicit consent from the users.
This means users might be more willing to share their data if they receive something valuable in return, such as personalized content, better user experience, or even monetary compensation.
Yet, WEB 3.0 does not prevent advertisers from collecting information about users. There might even be a rise in privacy-preserving technologies like zero-knowledge proofs and homomorphic encryption that allow companies to use data while preserving user privacy.
Myth 2: Users Would Need to Pay Tokens for Every Action Made in WEB 3.0
Reality: I cannot claim that every action in WEB 3.0 requires users to pay tokens. This approach is primarily used in the play-to-earn model, where consumers are incentivized by offering them bonuses, including tokens, for their actions to maintain their interest and keep them engaged in the game.
Additionally, having some technical understanding of Web3 is necessary.
However, this can be a burden and a limitation for entering the Web3 market since everything needs to be processed through the wallet, a significant challenge for mass adoption.
That is why there is a need for a proper understanding such as how to set up, register, and perform specific tasks on the platform or service.
Therefore, much work must be done to make mass adoption easier for users.
Myth 3: There Are no Ads and no Tracking
Reality: In the era of WEB 3.0, there will be new advertising and consumer behavior analysis formats. For example, the Advertising Video On Demand (AvOD) model lets businesses choose advertisement formats and types based on the target audience and campaign budget.
This promotes flexibility in strategy optimization, depending on the audience's needs and reactions.
In other words, users will become integral to the value chain, from the advertiser to the direct consumer. However, for this to work well, users must decide to whom they are willing to provide their personal information, interests, and other relevant data.
It must be clear that brand A, for example, can use my data, and in return, I will receive relevant content and respond to brand communication because I like the brand.
With this perspective, customers will be organically integrated into the value chain between the brand, advertising platforms, and services for different users.
Of course, tracking and ads will not disappear in WEB 3.0. Instead, they will exist in another paradigm. For instance, I would allow one brand or enterprise to use my data to interact with me. This brand or platform, through which I give my permission, will encrypt my data and store it in a safe place. Data transfer will only be for brand users.
Therefore, this paradigm's tracking, analytics, post-click, and post-view attribution models would function more efficiently.
Myth 4: Advertisers Would View the Personal Data of Users
Reality: The law prohibits the collection of anonymous personal data. However, in the case of WEB 3.0, advertisers would have powerful tools for analyzing marketing campaign results. This would allow businesses to track metrics such as views, clicks, and conversions and make real-time adjustments for optimizing outcomes and increasing ROI.
Myth 5: User Data Is Absolutely Protected
Reality: It is incorrect to say that the WEB 3.0 system has no weaknesses in storing personal data. At the end of the day, it is a technology, and private keys can be lost or even stolen. In terms of restoration, access codes can simply be lost or forgotten.
Simply put, all solutions that have a decentralized element can be vulnerable, as no one has canceled hackers or scammers.
In this sense, the distinction with WEB 2.0 is minimal, as all kinds of attacks must be dealt with by maximizing the protection of personal and server data. Additionally, governments may introduce regulations that could restrict the mechanism of WEB 3.0 and its usage under their jurisdiction.
Myth 6: WEB 3.0 Is Entirely Decentralized and Does Not Require Trust
Reality: In practice, most decentralized apps in Web3 still rely on centralization and varying degrees of trust. This is evident in selecting network protocols, consensus algorithms, smart contract codes, data storage providers, user interfaces, and control models.
These choices can result in potential errors, bias, manipulation, or censorship in Web3 DApps. Therefore, users should be aware of these factors and evaluate them critically.
Understanding new technologies is vital in developing WEB 3.0 and its impact on the AdTech industry. Advertisers can use blockchain-based tokens, individually or in collaboration with other brands, to encourage and reward their loyal customer base.
A core principle is communicating transparently with users entrusted with their data.
The landscape is rapidly evolving with the rise of decentralized social networks and advertising platforms, and navigating these platforms adeptly is essential. Upholding user privacy is a non-negotiable principle, and users must have complete control over their data sharing with brands.
Effective collaboration and partnership building with fellow stakeholders in the market is central to mutual learning and growth. Establishing direct, personal connections with their audience enables advertisers to deliver highly personalized advertising content while maintaining user privacy.
This synergy between WEB 3.0 technologies and the Adtech industry promises a transformative and user-centric future.