Without decentralization, our data will never be safe

The world’s digital infrastructure is under siege, and the only way to protect it is by building conflict-resistant systems. Recent high-profile breaches, such as the theft of every American’s Social Security number, have exposed a fundamental flaw in how we store and protect data.

At present, we are leaving ourselves open to catastrophic, wide-scale disruptions in the face of growing threats. We must urgently transition to resilient, decentralized technologies that can safeguard our critical information in an increasingly hostile digital landscape.

Recent reports that hackers have stolen every American’s Social Security number, along with high-profile breaches at ATT and OKTA , have made it abundantly clear that our digital infrastructure is alarmingly vulnerable. These incidents aren’t isolated; they’re symptomatic of a broader, systemic weakness in how we approach digital security and data storage.

The challenge of securing our digital world is one of the most pressing issues of our time, and the solution lies in developing conflict-resistant digital infrastructure.

The manner in which these recent hacks were carried out reveals a troubling pattern and underscores the urgent need for system design changes that can both disincentivize and defend against such attacks in the future. Whether the attacker is a lone wolf, a small syndicate or a nation-state actor, the end result is the same: widespread disruption and potentially catastrophic consequences. The focus must shift from who is attacking to how we can build more resilient systems that protect against all threats, regardless of their source.

Read more from our opinion section: If you want your funds back, get inside the hacker’s mind

The main reason attackers were able to access vast amounts of user data is because it was all stored in a single, central database. This approach is no longer just careless — it’s outright dangerous. Relying on such vulnerable methods for data storage risks catastrophic outcomes, especially during times of conflict when these systems become prime targets for attacks.

With the exponential rise in tools like generative AI that enhance even individual actors’ abilities to exploit systems, it’s crucial that we begin repairing and future-proofing these systems before they become untenable. AI doesn’t fundamentally alter the nature of security threats, but it significantly amplifies existing vulnerabilities — particularly by compromising the entire know-your-customer stack.

The 7th Annual Hacker-Powered Security Report revealed that 53% of ethical hackers are already using generative AI, which highlights how this technology can be leveraged to bypass established security protocols. The potential ramifications are alarming; as AI advances, it could soon render unreliable traditional verification methods (such as voice or facial recognition). This disruption serves as a stark reminder that our security frameworks need to evolve in parallel with these emerging technologies.

Beyond new innovations in disruptive technology, traditional malware such as viruses, ransomware and spyware continue to pose significant threats. Ransomware, where hackers encrypt victims’ data and demand payment for the decryption key, remains particularly problematic for both individuals and institutions.

Enabled by phishing scams and other deceptive tactics, hackers have found considerable success with these traditional methods, and their power will only grow with the new tools emerging from the ongoing AI boom.

The answer to these growing threats lies in truly resilient technology.

Read more from our opinion section: We can’t afford to repeat the mistakes exposed by the WazirX hack

Resilient technology refers to systems that enable private, autonomous and capture-resistant communication, organization and transactions. It also ensures the protection and preservation of individual identity, actions and ownership. Decentralization and sovereignty, both at the individual and community levels, are essential to resilient technology.

These elements ensure that functionality and autonomy persist even during network disruptions or cyberattacks. Hackers are as bold and brazen as ever despite the legal risks and severe punishments because the potential rewards are enormous, and the targets are often inadequately protected. 

Consider the Social Security Database as an example. If a hacker or group of hackers manages to breach that single database, they gain access to the most critical piece of identity for the entire American population. The potential black market value of this data is staggering. If the estimated $4 value per Social Security number holds true, accessing the numbers of all 333 million Americans could yield a potential value of over $1 billion in stolen data.

The entire incentive for such a heist could be mitigated simply by decentralizing the storage of data. The task becomes much more arduous, and the trail of clues left behind significantly longer, if each SSN is stored separately and must be procured individually. Four dollars per piece is far less attractive than a cache of data worth over $1 billion.

Additionally, zero-knowledge proofs (ZKPs) and shielding technology are emerging as extremely powerful tools in securing the digital world and protecting sensitive data. These advanced cryptographic methods enable the verification of information without revealing the underlying data itself, which would allow for secure interoperability between private institutions and larger public systems. 

The implementation of ZKPs allows organizations to minimize data exposure, enhance authentication processes and secure transactions without compromising functionality or user experience. Along with other critical components — such as encryption, secure enclaves and network segmentation — shielding technology offers the means to create robust defense systems against unauthorized access and data theft.

Innovation in encryption methods is also providing powerful new tools in the fight for data protection and system security. Specifically, homomorphic encryption, which allows computations to be performed on encrypted data without decrypting it first, is a highly promising development. This technology, alongside privacy and shielding methods, is crucial for securing individual and institutional data and for national defense.

Read more: What is fully homomorphic encryption and how will it change blockchain?

It is in a nation’s best interest to ensure that its citizens’ data is shielded from adversaries, as exposure could lead to targeted attacks and broader security risks. Protecting sensitive information is vital to maintaining sovereignty and security in an increasingly digital and interconnected world.

There is a common thread among the tools that build resilient technology: the ability to protect information, uphold security for users and institutions and ensure sovereignty over critical data and systems. The digital and physical world is becoming more complex and chaotic. However, we have yet to truly experience the level of disruption that a global conflict would bring. In an interconnected digital world, creating chaos-resistant systems is essential to protecting the infrastructure we all rely on.

It is of vital importance that we strengthen these systems now before it’s too late.

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