NYNJA Chief Strategy Officer: Facebook's Cambridge Analytica Scandal Reveals Two Key Problems with Today's Internet Giants
There is a lot of talk going on about Facebook and their relationship with Cambridge Analytica. This scandal uncovers 2 main issues:
1. Fundamentally the current leaders in the Internet space (Google, Facebook, Instagram, Snapchat etc) are flawed because they don’t have a business model that is independent of ads and selling user data for profit
2. Depending on what we find out, It’s possible that management in such companies are knowingly breaking laws or at least pushing well past the point where the user would knowingly and actively consent to how their data is being stored and used
Data abuse has gotten so bad that several founders and key employees of social networks are publically expressing regret at building systems this way, which have had a negative effect on society and have become ripe for abuse by bad actors.
As is always the case, when market participants fail to self-regulate, the regulators come in – and in Europe we have a real doosie with the GDPR.
In short, GDPR is a European framework for data security and what rights users have to their data. The need for such regulation is clear, however there are many provisions that can cause trouble for existing companies.
For example, one of the rights laid out in the GDPR is the user’s right to be forgotten. One may say that’s easy – just delete the user’s data as they requested. However, what about log files? What about backups and offsite backups? What about copies of the database migrated for testing environments? “Deleting” data is a matter of degree.
No matter what Facebook does, it can’t help but accept that they grew a multi-billion dollar business based on selling and using customer data. That’s going to be tough to undo.
However, there is a new crop of platforms and apps beginning to come out that are based on cryptography and blockchain. As such, by default data can be much more protected not only by technology but also because these new platforms have business models built into their DNA through the use of cryptocurrency.
For example, with NYNJA users can import their own encrypted wallet private keys and thus NYNJA doesn’t have access to the user’s data at all. NYNJA’s platform is being designed from the ground up, not to pay lip service to regulation, but to genuinely put the control back in each user’s hands.. NYNJA’s business models ensure that there will be no need to sell user’s data for revenue – and we will follow data regulatory rules to the T, not only in practice but in spirit.