In this use case, we cover:

• Over-transparency is a bug.
• Why do individuals want to encrypt their assets?
• Why do individuals want to showcase their assets?
• The transparency vs privacy dilemma.
• What is DOP?
• What is ‘selective transparency’?
• How can individual users benefit from DOP?
• How do individual users interact with DOP?
• Why is DOP the data ownership solution for individual users?

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 that is stopping mainstream individual users from benefiting from the wonders of DeFi.

DOP solved this statement.

Here’s how.

Why do individuals 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.

In Web3, this is not the case.

Web3 natives, newbies, and those thinking about joining web3 often worry about who is looking at and analyzing their financial data and why. Those who have yet to enter web3 often see over-transparency as a barrier to entry. They want to benefit from decentralized finance but don’t want to expose all of their on-chain financial information. They want the encryption they receive in traditional finance.

Here are a couple of reasons people might give for keeping their on-chain financial information undisclosed:

Jane says, “I want to invest and transact in crypto. I even have the option to receive part of my salary in crypto and want to opt in. My friends are looking at such solutions as well. What stops me is that if I use one wallet for transactions, others who know my wallet address can see what I hold, how much I hold, and how I spend my money. I am not ready for such exhibitionism. I want to keep my finances private, so I am opting out of crypto for now.”

Mike says: “I am a blockchain marketer, using tools like Etherscan daily. I know that information about assets in one’s wallet can often be used for targeted advertising. Especially if the user has previously used a platform that combines the wallet address with social media accounts. I want to keep my blockchain data private and not receive targeted sales and marketing calls based on my holdings or transactions. I have multiple wallets and change wallets regularly to ensure privacy.”

Alex says: “I am into web3, and I hold some assets, but I am worried about investing serious money. I heard about targeted phishing scams where hackers analyze people’s holdings to target them and exploit people’s gullibility. I don’t know how to protect myself from such practices if all my information is visible. Unless there is a solution, I don’t think I will invest larger sums in crypto.”

While some are worried about their privacy and the lack of ability to keep their information secure, there is more to this issue than finding a solution that allows to keep on-chain data encrypted.

Why do individuals want to showcase their assets?

On the other side of the on-chain privacy spectrum are users who are proud of displaying their wallets.

Users want to showcase their tokens and NFTs to prove support for projects they believe in, show certain communities’ affiliations, and build their brand around their holdings.

Here are a couple of reasons people might give for keeping their assets on show:

Brad, a passionate NFT collector, says: “What’s the point of holding your NFTs if others can’t see them in your wallet? I want everyone to know I own this particular wallet and what an amazing collection I have. This is part of my identity, the personal brand I am building. I like to think of myself as an art collector and call my wallet my private gallery.”

Zoe also prefers for her assets to be visible and says: “I take part in many community quests where I need to prove I hold certain assets to receive a reward. I also feel that proving the ownership of certain assets will become a norm in gaining access to certain platforms and services. I don’t want on-chain privacy to slow down this progress.”

The over-transparency dilemma.

There are benefits to both privacy and transparency. That’s why Web3 users don’t entirely agree on whether they want to keep their assets and transaction data visible or whether they want to keep everything encrypted.

What is more, there is some security and compliance reasoning behind keeping on-chain data visible. Many argue that only total on-chain transparency allows for proving one’s funds’ origins for tax and compliance purposes. Those who oppose privacy on a chain often argue that encrypting transactions could encourage the use of crypto for illicit activity.

Nevertheless, total transparency and total privacy are two extremes, and extremes are never the solution. The answer lies in the middle.

And in the middle is DOP.

What is DOP?

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

DOP answers Vitalik’s calling and goes a step further. DOP solves the problems blocking Jane, Mike, and Alex from entering web3 while addressing the needs of Brad and Zoe.

DOP redefines data ownership in the blockchain era. It recognizes that data security is a primary user right 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 that web3 users can use to encrypt data and decide what they want to leave on show. They will also be able to reveal the data only for specific users, projects, or companies to prove the origins of their funds or affiliation with particular projects or communities.

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.

Such a solution works for Jane, who doesn’t want others looking into her finances, but it also responds to Brad’s needs, allowing him to show proudly his NFTs to everyone.

Selective transparency on-chain does not only mean selective asset transparency. It also implies selectivity in who can access and view what data. Users can share their data with a third party for compliance or verification purposes without putting it out for everyone to see.

DOP offers full selectiveness in choosing what data to share and with whom. Choosing a third party to share certain data with does not also mean that the party will immediately gain access to all data. The user can still choose what asset and transaction data to share and what should remain encrypted.

This solution addresses Alex’s needs, who is worried about targeted phishing scams, but also gives Zoe peace of mind that she can use her wallet to verify her assets and identity.

How can individual users benefit from DOP?

When using DOP, users gain full data ownership. They are the sole decision-makers regarding how their financial data is shared and how.

Individual Web3 users interact with DOP because:

• 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 users to perform encryption, decryption, and selective data sharing from a single account.
• They proudly showcase their holdings while securing more sensitive data — building a personal brand while undisclosing one’s financial information has never been this easy.
• They are ready to move to decentralized finance fully — DOP users have full control over the disclosure of their financial data. They are ready to move most of their finances to DeFi.
• They benefit from faster transactions and lower gas fees — DOP takes transactions off the main chain (Ethereum for now), resulting in more significant throughput and lower transaction fees.
• They are part of the revolutionary blockchain data ownership movement.

How do individual users interact with DOP?

DOP has made it seamless for all users to interact with DOP and benefit from data ownership. Encrypting and decrypting assets takes seconds while setting up a DOP wallet takes less than 5 minutes.

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

Users interact with DOP by:

• Setting up a DOP wallet.
• Connecting their MetaMask to DOP.
• Choosing what assets they want to encrypt (or decrypt).
• Sending and receiving encrypted assets.
• Choosing who can view what data and when.
• Building their Web3 profile and brand showcasing the assets they are proud of while keeping everyday finances private.

Summary: Why is DOP the data ownership solution for individual users?

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 the user becomes the decision maker.

DOP is the only way web3 users can take ownership of their data and decide what to leave on display and what to keep private. Coupled with a simple interface, it creates a solution for Web3 natives, newbies, and those yet to enter Web3.

DOP lays a foundation for taking decentralized finance mainstream.