The Importance of Self-Custody: Why Being In Control Keeps Your Data Safe
When it comes to safeguarding your data from unauthorized access, ownership is key. Self-custody of data refers to the ability of users to maintain control and ownership over their own digital assets without relying on centralized intermediaries like platforms or service providers.
A self-custody wallet is a digital asset wallet with a private key, which puts the user in control of accessing, storing, and transacting their own data. (This is in contrast to a custodial wallet, where the user does not control their private keys and instead relies on a third party to manage them.)
Self-custody puts you in control.
Self-custody is important because it gives individuals autonomy and control over their personal information, which can mitigate the growing risks associated with having our data stored online.
With self-custody, users have complete ownership of digital assets without going through a centralized authority or third party. This arrangement is one of the things that make crypto economies so powerful.
In the future, self-custody will play an increasingly important role in Web3 infrastructure and the broader digital identity industry. This will also improve users’ privacy, as they will have greater control over their information.
Indeed, many industry experts argue the ongoing crypto crisis confirms the importance of data ownership, because it means users can protect their assets forever by moving them into self-custody wallets.
The popular saying “not your keys, not your coins,” coined by Bitcoin advocate Andreas Antonopoulos, gets passed around a lot among the crypto community. If you don’t own your private key, the saying goes, you don’t own your funds.
ShareRing argues that if you don’t own your data, you don’t own your identity.
These conversations are becoming increasingly important in the face of massive data leaks, such as the Optus breach in September, which put 2.8 million people at a “quite significant” risk of identity theft and fraud.
How does self-sovereign identity work?
ShareRing Vault is a “self-sovereign identity” (SSI) system that brings autonomy to digital credentials. The Vault is a digitized document wallet that allows people to take self-custody of their digital credentials and remove the need for centralized platforms that store masses of personally identifiable information (PII) like birthdates and social security numbers.
Uploading your documents into your Vault ensures that you have digital access to these documents no matter where you are, whilst also ensuring that no other entity has access to your credentials, unless you grant them permission.
By storing your data securely in ShareRing Vault, you can verify your identity with just one click on various Web2 and Web3 platforms, bank accounts, DeFi exchanges, and more. You only share the information you need or want to — and can take it back at any time. This takes power away from the tech companies that act as ‘gatekeepers’ and control today’s Web2 infrastructure.
For example, Amazon controls a third of the global cloud server market, while Google has a share of over 92% of the worldwide search engine market. When you use Web2, you agree to let Big Tech companies track your activity and sell your data.
When you verify your identity with a third party using Vault, you can choose what details to share as you navigate the digital world. ShareRing never stores your details or collects your data.
Self-custody of digital credentials plays a crucial role in building the future global infrastructure for Web3. By taking back ownership and control of our data, we can ensure that our information remains secure and accessible. And by leveraging self-custody, we can help create a more decentralized and equitable web where users truly own their data and assets.
So if you’re interested in protecting your personal information, ShareRing Vault is a vital tool for keeping your data secure.
Are you ready to take back control?
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