July 13, 2022

In ‘Web 3, new version of Internet, promises greater data privacy. But there are drawbacks’ (The Straits Times, July 2022), Dr Natalie Pang, senior lecturer and deputy head at NUS Department of Communications and New Media, explains that Web 3, the next version of the Internet, may offer a way to address some of the issues plaguing Internet users today.

Currently, we are in the age of Web 2.0, characterised by user-generated content shared on various websites and social media platforms. The escalating amount of Internet users’ data generated online has raised privacy concerns. The issue of privacy may be better addressed in the age of Web 3, which involves applications premised on a new model of data ownership and control by users. Built on blockchain, Web 3 allows users to have more control over how their data is collected and monetised.

However, Dr Pang also points out potential drawbacks of Web 3. First, Web 3 projects will incur higher operating and transaction costs because the projects run on users’ devices rather than on a centralised data centre. Second, a Decentralised Autonomous Organisation (DAO), which is a member-owned community without centralised leadership, can still be hacked if there are security vulnerabilities. Cryptocurrency is also vulnerable to scams and phishing. Third, even though transactions in Web 3 are pseudonymised, it may still be possible to extract personal information from metadata and users’ transactional data. Lastly, decentralised governance is more theoretical than real. In reality, people with a large share of a blockchain’s tokens have the controlling vote over most decisions.

Notwithstanding the challenges, Dr Pang believes that DAOs offer an opportunity to rethink how Internet users can organise themselves and engage with one another differently. New business models may spawn. But these things take time to develop as users start to appreciate how Web 3 projects operate.

Read the article in The Straits Times here: https://www.straitstimes.com/tech/web-3-new-version-of-internet-promises-greater-data-privacy