The Centralization Crisis Threatens Data Privacy

Opinion

When the interruption of temporary data interruption leads to the disruption of the global financial system – as the AWS TOKYO was interrupted in April – an error occurred in the infrastructure that supports the data economy today.

In the early hours of April 12, Amazon Web Services (AWS) witnessed a “communication problem” at the data center in Tokyo. The power outage lasted only 36 minutes, but the effects of the ripple were immediate. When AWS, as well as the structure of the global economy, stumble. It is not only our assets or money at risk.

The same fragility now expels the doors of the United States government, more specifically, the service of internal revenue, through a Doug’s experimental initiative to build a “huge application programming interface” to focus access to taxpayer data through one cloud platform.

Let this drown. Personal financial information for every American can now be managed through a unified interface. Perhaps he was violated by a bad actor. All this under the slogan “efficiency”.

We have seen how dangerous this type of centralization. Aws Tokyo is not just a warning story for global financing; It is an actual time for public institutions that are considering going to unify the cloud without sufficient democratic guarantees and a central, non -technological tubes. This new reality provides a great invitation to wake up to institutions that have public communication.

Evidence of risks

Consider whether the IRS Mega applications interface decreases during the tax season. Or if it is configured incorrectly. Or if it is penetrated. There is a better way.

Decentralization technology provides a radical different structure. Instead of integrating energy into a single application programming interface or cloud service, decentralized systems distribute them across many nodes. Access is controlled by encryption proofs. Onchain procedures are verified, and privacy is preserved through zero knowledge protocols.

Without supporting data privacy, with government and financial control over some of its most sensitive data, all it requires is a rapid change in politics to mean that someone is not qualified to obtain certain services.

The privacy of real data adheres to individual self -rule and equal treatment for all, and ensures that governments and institutions are maintained according to the highest accountability standards.

The AWS Rapid decision should not be reassured. We must be concerned that the entire data plane for biomedes – financial, governmental, or otherwise – can stop due to a single central failure point. If Doge Mega API is built on this same model, this may quickly lead to a financial revolution for American families.

Enter decentralization

In the Blockchain IRS data system, you will not need to grant a decentralized cloud provider access to raw taxpayer data. Instead, smart contracts can verify eligibility for credit or compliance with a tax base without revealing basic personal information.

Such systems are not theoretically safer and more democratic structurally. Data stored on Blockchain is not changeable, creating a futile -resistant system that can withstand editing attempt.

Along with this resistance nature, the smart communication system means that user data remains private and safe, with a little need of human communication with sensitive information.

Related to: The Tax Authority appoints Trech Turner to the head of the encryption department, amid resignation

For this reason Countries like Estonia And regions in the European Union Explore the actually decentralized general infrastructure Identity and digital services.

The real risks are political abuse

There is another deeper concern here: political power. When accessing citizen data is central, as well as the ability to arm it. Today, he is an engineer in Antire and Doug’s agents. Tomorrow, the political appointed can be with the grinding ax. The bad actor can change tax declarations, recruitment date and family data by logging in.

DOGE experience is not just an IT plan. It is a re -imagination of how citizens interact with the government, and how much power that the government (and its contractors) should have on our data. If we allow these changes to rush, under the cover of “efficiency”, we risk circulating the chaotic pluralism of the general ruling of the fragile speed of central technology.

AWS interruption is a clear signal: cloud platforms are not infallible. When they fail, the consequences are followed. Let’s not make the same error with a governmental institution as the Tax Authority.

Decentralization technology is not perfect, but in an era where confidence and data ignores currency, it provides a safer, more just and more flexible vision. We cannot ignore this Web3 vision, especially when our institutions are completely opposite.

Opinion: Angie Darrow, Senior Marketing Official and Ecological Communications Ecological employees at Web3 Foundation.

This article is intended for general information purposes and does not aim to be and should not be considered legal or investment advice. The opinions, ideas and opinions expressed here are alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.