A decentralized database powered by the blockchain makes a world of difference.
CENTRALIZED STATUS QUO
When people choose to share their information online, the majority of it ends up in one of a few central databases. Whether the database is owned and run by a small firm, or it is one of the vast storehouses owned and operated by tech giants like Google and Facebook, these central hubs are where information shared online is stored, cataloged, and applied. This model, which consists of storing data in one place where it is then distributed by the owner of the database is a common universal practice, but it has two fundamental flaws: control and security.
Once data is registered into a central database, the person who initially entered it has no control over what happens to it anymore. It may be saved, deleted, shared, or altered entirely by the owners of the database, which is usually one of the tech giants. Even if the original uploader of the information wanted to move that data elsewhere, they would have to make a request to the database owner. Those companies are the ultimate arbiters of that data and everyone must rely on them as middlemen in any data transaction. Consumers understandably dislike not having any control where their information ends up, but the nature of the central database paradigm doesn’t provide for any other option.
It may seem to some that this model makes it easier to obtain data since the majority of it is stored in a few centralized databases run by huge corporations with some of the world’s top cybersecurity experts. However, after learning of many data breaches over the years, it has proven to be very dangerous because of their vulnerability to hackers.
No matter how good the security may be, a central server has many points of weakness where hackers can gain access to data. A sophisticated hacker can even hide their trail from the owners of the database, leaving them unaware of the breach for an extended period of time. The truth is that it’s a matter of when, not if, one of those central data servers is hacked. To many people, relying on databases that have repeatedly been hacked or compromised seems like a mistake, but it’s hard to avoid when they play such a dominant role in online interactions.
Arianee’s mission is to build the first perpetual, anonymous and trusted record of all global assets. If we hope to accomplish this mission, centralization of data cannot be part of our solution. We believe blockchain technology is a superior method of data storage and exchange, which is why our protocol is so heavily dependent on its decentralized nature. The subtle power of blockchain technology is ultimately what makes Arianee a superior service compared to any that rely on centralized databases.
The fundamental attraction for using blockchain technology is that it puts an end to the monopoly of data control by the giant tech companies. Blockchain frees consumers and brands from the limitations that the giant databases have set, as well as their security risks. Arianee leverages the blockchain to build a decentralized database of valuable goods, without the need to trust a third-party data store. And the whole operation runs semi-automatically thanks to the way blockchain technology works.
Information that is stored on a blockchain is encrypted and continually audited. That means user privacy is protected, and any attempts to tamper with data are immediately identified. If Arianee users wish to share information with a brand or third party, they have the ability to do so, but they can decide which elements they would like to share, with lines decrypted individually.
The power of blockchain technology is also very evident in terms of security. With a blockchain distributing information across a whole network, there’s no central point for hackers to target. The data can’t be lost if one or even several computers are damaged or taken offline. And, because of its decentralized nature, even a successful hacking can’t go unnoticed because the change would immediately be spotted on the distributed ledger of the network.
In the case of Arianee, blockchain technology works specifically for assets added to the protocol. For instance, John has a watch stored in his Arianee vault as a Smart-Asset and he would like to get it insured through a third party. By smart-linking the watch with the insurer, John can grant them with certain access, such as “read access” or “write access” without compromising any of his personal information. Owners can also delegate their authority to brands or third parties, which opens new doors to the creation of smart contracts and decentralized apps on the Arianee blockchain.
It’s the blockchain technology that enables Arianee users to take control of their own data in a way that would be impossible using regular databases. It’s a very different proposition from the all or nothing nature of a traditional database, where a “terms and conditions” document can potentially lead a user’s data getting vacuumed up into a company’s servers.
The ability to control how much information to reveal also gives the user the power to uproot and move all of their data. They can essentially unplug their personal database from the system, and can even configure it for a new interface without losing any history.
Using blockchain technology also gives Arianee a leg up when it comes to compliance with GDPR. Because we built our protocol in anticipation of the new rules, we designed it to naturally integrate with those laws. Because of the decentralized data system, owners control their own data, and the protocol is entirely compliant with GDPR.
Counterfeiting drains billions of dollars from the industry and a permanent, trustworthy method of proving whether or not a product is authentic improves value for both the owner and the brand. Arianee represents the future, where violations of privacy and large-scale data breaches simply no longer occur. That is especially important since Arianee deals with sensitive information that involves valuable products and merchandise. Data protection must be a top priority, and the pinnacle of such protection is found in blockchain technology.
Without blockchain technology, the Arianee protocol would not be possible. Though its presence is designed to be invisible to users, it is blockchain technology that is at the core of Arianee’s services to brands and consumers alike.