Alain Falys, Co-founder at Yoyo Wallet, has predicted that, in the coming years, it will be negligent and unlawful to store data in a centralised form. Falys noted that data security is pretty much a problem, but there are ways to solve it.
Speaking on the topic, ‘Enough is Enough: The Power of Blockchain To End the Era of Big Data Breaches’ at the Malta A.I. and Blockchain Summit on Saturday, he asserted that the epoch of centralised data is coming to an end.
“I believe the days of centralised data storage are counted,” Falys emphasised. “Otherwise, we are going to have problems with the technology we are building.”
Stolen Crypto Assets
Falys explained that he does not want to talk about just Crypto assets. The reason, he explained, is that everyone knows that the number of Crypto assets stolen is a problem for exchanges.
He revealed that an estimated $2 billion worth of Cryptocurrencies had been stolen from exchanges, with a number as high as $15 billion sometimes mentioned. He pointed out:
“Crypto asset has a problem around data storage; custodians have a problem around data storage, the technology is not keeping up with the advance of this new wonderful sector around Crypto. But there are many areas where data security is becoming a huge problem.”
Falys referred to a previous speaker’s assertion that there are four billion social media users whose data are tracked and sold without their knowledge. The phenomenon, he said, has been referred to as compromised, which has become the normal view.
“We sort of almost take it for granted that, somehow, it is part of the world that we are in, that our data is supposed to be compromised,” as he expressed his concern.
Touching on the world’s most significant data breaches in 2018, he mentioned how cyber experts stole over 330 million customers’ data from the Marriott Hotel. The stolen information included login details, passport photos, car details, and nights spent at the hotel.
Falys thinks it is quite significant and considerable number. Again, he mentioned the Twitter and Facebook hacks and pointed out that, for each one of them, there might be 50 or 100 that the public is not aware of, simply because the companies are not well known and, therefore, don’t make the news.
He further remarked that It is obvious that the situation is becoming a bigger problem. “From 2015, 2016 and 2017, what you see is that the circles are becoming bigger and bigger.”
Moreover, he demonstrated how IOT data is vulnerable to hacks. According to him, this is the case, because there is no standard to protect the data and the encryption technology has not kept up. “I think enterprise, in general, cannot guarantee safe custody of valuable data, and, more often than not, it is crowned as our data.”
Decentralisation And Smart Contracts
In his opinion, the situation is urgent, and the problem is so bad that it can break the internet, Falys opined:
“It is not about the technology so much. I believe it is about trust. The trust is actually collapsing around the companies that we use most. It is not necessarily social media, but it is obviously e-commerce, banks, insurances, and so forth.”
He said that there is a need for a completely new data architecture for the cloud. Therefore, the problem should be turned on its head.
“There’s light at the end of the tunnel; the blockchain can actually solve a lot of that,” he declared. “We have decentralisation, so we have to imagine a different world here around the security of data. We now have Smart Contracts that can manage permission access.”
He further explained that data fragmentation technology exists and that it has been utilised before, coupled with cloud infrastructure and smart engineers. Falys urged his audience to imagine a world where data is stored in fragments across multiple nodes and geographies, where the data is recombined as when needed through Smart Contracts.
“What I’d like to posit here is that we’ve today a new data security paradigm that is possible, where data never rest whole anywhere in any computer or any cloud. Data is only stored in fragments. Data in transit is never whole data.”