DOP proves its friendly UX will soon allow crypto newbies and natives to choose precisely what assets are visible to everyone, which are kept private, and which assets are encrypted and shared only with those named by the wallet holder
Full transparency, coupled with decentralization, are the fundamentals of blockchain. Because blockchain technology is inherently transparent, all transactions, including the wallet addresses and the amounts transferred, are visible to anyone on the network. While many glorify this inherent feature, the industry has growing concerns about the potential risks associated. Could blockchain stay decentralized and safe while giving users ownership over their data?
The soon-to-be-launched Data Ownership Protocol (DOP) claims they found a solution to this burning question. DOP’s recently released Sepolia testnet aims to prove web3 is ready for data ownership and, hence, the mainstream.
What exactly is DOP advocating for, and how will their solution make web3 a better place for individual and institutional users?
Issues with on-chain transparency
DOP follows a simple maxim: „Over-transparency on the blockchain is not a feature, it’s a bug.“ In traditional finance, users‘ most sensitive financial data, such as account balances and incoming and outgoing transactions, are encrypted and invisible to non-involved parties. On blockchain, this information flows freely. According to DOP, this impacts both individual users and businesses.
It makes sense for web3 users to want control over who can access their transaction details. Currently, curious eyes can trace assets, track trades, and map out people’s and companies‘ digital wealth. This level of transparency means your financial moves are on display for all to see. Total transparency allows unlimited snooping, which may not always align with users‘ desires for the discretion of their digital assets.
At the same time, web3 wallets have become a ’social media‘ profile, where assets held (especially NFTs) play a crucial cultural role in building one’s identity.
