In this use case, we cover:

• Over-transparency is a bug.
• Why do businesses use crypto?
• Why do businesses want to encrypt their assets?
• Why do businesses want to showcase their assets?
• What is DOP?
• What is ‘selective transparency’?
• How can business users benefit from DOP?
• How do business users interact with DOP?
• Why is DOP the data ownership solution for businesses?

Introduction: Over-transparency is a bug

Transparency is a feature often glorified by blockchain enthusiasts. It is also often called the inherent feature of blockchain, stemming from its very core — decentralization.

Many think that decentralization means that all data on-chain must be transparent and viewable by everyone. But this thinking is an old-fashioned approach to crypto. Over-transparency is a bug stopping larger and established businesses from using cryptocurrencies in their day-to-day financial operations. It stops them from hiring tech-savvy talent worldwide, wanting to be fully or partially paid in decentralized assets.

DOP removes one blocker that stops finance departments from using crypto in everyday operations.

Here’s how.

Why do businesses use crypto?

1. Accepting payments in crypto
   Accepting payments in crypto is the first thing that comes to mind when talking about traditional businesses operating within the Web3 realm. As cryptocurrencies and decentralized finance rise in popularity, offering crypto payments can be a USP that attracts and retains tech-savvy customers who already hold and use crypto.
   For more insights, check out this Forbes Advisor article on why a business may use crypto payments and how to implement them.
2. Paying employees in crypto
   In 2021, Nasdaq released a report showing that a third of millennials and genZ would be interested in receiving 50% of their salary in crypto. With the increasing adoption of Web3, those numbers are likely to rise. Employers wanting to stay competitive and hire top tech talent might need to open up to using cryptocurrencies for employee compensation.
3. Launching and using own token
   Businesses already navigating the Web3 landscape may be prompted to launch their own token to complement their operations, raise capital, and receive support from their community, consumers, or users. Attaching governance rights to a token further allows the people most invested in the business to have a say in how operations are conducted and what that business provides. A business might want to compensate its employees further in its native token to show appreciation and motivate its teams to work towards that business’s success. As organizations move away from traditional hierarchical models, more companies may consider launching a token to govern their operations and reward employees.
4. Liquidity and capital access
   Businesses from highly regulated industries struggle to access a level of capital or institutional investment broadly available to more traditional types of business. Crypto offers new growth financing and investment methods for companies that find raising capital and achieving liquidity more challenging via the conventional route.
5. Seamless cross-border transactions
   Many of the world’s banking systems are outdated and incompatible. An international wire transfer may take days to reach the recipient’s account. For new, global businesses, where things happen promptly, traditional banking is simply too slow and poses risks of delaying or compromising some business operations. Crypto and its infrastructure offer a lucrative alternative for businesses that trade globally and don’t want to rely on outdated systems that are incompatible with one another. Companies may want to move to cryptocurrencies for faster, global, interoperable transactions.
6. Financial security for businesses in developing countries
   Businesses within developing countries that struggle with corruption, inflation, or political instability may resort to crypto to safeguard their finances. Self-custody of assets offers businesses operating in financially or politically unstable regions peace of mind when planning operations and budgeting without the threat that political turmoil will affect business operations.

For further insights, check out this report by Deloitte covering cryptocurrency benefits for businesses.

Why do businesses want to encrypt their assets?

In traditional finance, account information is encrypted. It’s kept very secure by centralized institutions such as banks, keeping their customer’s most sensitive financial information safe. When it comes to business cash inflow, outflow, or how much certain clients are paying for services, most companies keep this information secure and accessible only to C-level executives and finance departments. Employee compensation is often subject to HR confidentiality law, and many businesses are legally required not to disclose it. In traditional banking, transaction details and amounts are only seen by:

1. The bank.
2. The sender.
3. The receiver.
4. In some cases — governments and legislatures.

In Web3, this is not the case.

Blockchain transparency means that security and financial data confidentiality are non-existent. Anyone who knows a business wallet address can see what and how many assets that wallet holds, the amounts, and the regularity of incoming and outgoing transactions. Clients paying consulting retainers in crypto can analyze that wallet data to gauge how much they pay versus other businesses their consultant serves. The same goes for employees, who, with blockchain’s transparency, can make a pretty accurate guesstimate on how much they are being paid compared to their colleagues.

Businesses considering using cryptocurrencies for their operations might be reluctant to do so because of the risks blockchain’s total transparency poses.

Businesses already operating in Web3 often resort to having multiple wallets to transact with various stakeholders. Yet, this requires a lot of planning, resources, and operations, which may create chaos and additional workload and increase potential errors, affecting the business.

Encryption can be the best option for businesses transacting in crypto. The main reasons for wanting to encrypt transaction and wallet data by businesses are:

1. Client confidentiality
   Businesses want to keep the details of their transactions with clients confidential to avoid disputes and queries from various customers. They want to keep their own and the client’s information secure away from the eyes of third parties such as competitors.
2. Employee confidentiality
   Businesses want to provide financial confidentiality regarding how much employees are compensated for their work. In many businesses, compensation confidentiality is written into company policies.
3. Operational confidentiality
   Many businesses want to keep the state of their finances, investments, and incoming transactions confidential and accessible only to key decision-makers. Total transparency might result in unnecessary questions from various stakeholders. For example, when financial difficulties occur, employees might get worried about their careers and become demotivated or start looking for new jobs, causing a downward spiral and further disadvantaging the business.

Why do businesses want to showcase their assets?

On the other hand, business finance tends to be much more regulated than individual finance. Therefore, in many cases, business financial transparency is required by governments and regulators. Businesses need to prove the levels of investment received, the company cash flow, and other financial information. In traditional finance, centralized banks provide statements and vouch for the accuracy of the information provided. In Web3, the blockchain architecture makes the information non-tamperable, and transparency allows regulators to access all necessary information.

Proving the legitimacy of funds is another important aspect of why businesses that use crypto for operations might need a certain level of transparency. Total privacy creates leeway for cybercrimes, fraud, and money laundering, which has already caused the US to ban certain blockchain privacy solutions such as Tornado Cash. Global businesses that are serious market players want to be able to leverage blockchain transparency to prove the legitimacy of their funds to avoid potentially costly and reputation-heavy lawsuits or investigations.

How can businesses safeguard their financial operations when using crypto, yet, at the same time, keep the level of transparency for verification, compliance, and legal purposes?

DOP provides a middle ground.

What is DOP?

In his paper, Vitalik Buterin called for a solution to allow crypto holders to encrypt their data while sharing the transaction history and assets held with certain parties for security and compliance purposes.

DOP answers Vitalik’s call.

DOP redefines data ownership in the blockchain era. It recognizes that data security and confidentiality are primary user rights and integrates selective transparency. It lets users choose what data to encrypt and share, with whom, and when. DOP pioneers data ownership on-chain. It utilizes zk-SNARKs and ECDSA to validate transactions without revealing the underlying data. DOP advocates that data stewardship is a fundamental right.

DOP is an easy-to-use tool for businesses running financial operations in crypto. They can encrypt their data and reveal its data only for specific users, projects, or companies to prove the origins of their funds.

What is ‘selective transparency’?

Selective transparency means that users fully own their data and can decide what to disclose and keep private. On-chain, selective transparency implies that users can ‘hide’ (encrypt) only certain information, such as assets or transaction amounts. At the same time, users can choose what assets and data they want to leave on display. Businesses using DOP can decide to disclose information only when legally required without compromising financial security and confidentiality.

DOP offers full selectiveness in choosing what data to share and with whom. Choosing a third party to share data with does not also mean that the party will immediately gain access to all data. If a legislator requires access to only part of a company’s operations, a company might choose to share only specific on-chain data.

How can business users benefit from DOP?

When using DOP, businesses that run operations in crypto gain full data ownership. They are the sole decision-makers when it comes to how their financial data is shared and with whom. They stay compliant and can provide data to regulators, but at the same time, they can safeguard the business’s most sensitive data from unauthorized persons.

Businesses operating in Web3 interact with DOP because:

1. They have one wallet for everything.
   DOP puts an end to having multiple wallets for different assets and purposes or changing wallets frequently for privacy and security. Selective transparency allows businesses to perform encryption, decryption, and selective data sharing from a single account.
2. They keep their financial data confidential.
   Businesses using DOP incorporate crypto into their financial operation without worrying that confidential information will leak or become accessible to unauthorized persons.
3. They stay compliant and can prove their funds’ legitimacy.
   When asked by legislators and regulators, businesses that safeguard their data with DOP can still prove the origins of their funds and the accuracy of their financial statements.
4. They are part of the revolutionary blockchain data ownership movement.

How do business users interact with DOP?

DOP has made it seamless for everyone to benefit from data ownership. Encrypting and decrypting assets take seconds while setting up a DOP wallet takes less than 5 minutes. Non-technical accounting and finance teams can access and use DOP without trouble, easily incorporating crypto payments and selective transparency into their business operations.

Currently, DOP works with Ethereum and MetaMask, but it will become chain-agnostic and integrated with most wallets on the market.

Users interact with DOP by:

1. Setting up a DOP wallet.
2. Connecting their MetaMask to DOP.
3. Choosing what assets they want to encrypt (or decrypt).
4. Sending and receiving encrypted assets.
5. Choosing who can view what data and when.
6. Keeping their finances confidential while staying compliant.

Summary: Why is DOP the data ownership solution for businesses?

DOP is the pioneer of data ownership on-chain. It is the first solution available that does not advocate for complete privacy or total transparency. DOP offers a middle ground where businesses can undisclose their finances yet still prove the authenticity of transactions and fund legitimacy when needed.

Coupled with a simple interface, it creates a solution for Web3 and transitional businesses.

DOP lays a foundation for taking decentralized finance mainstream.