Decentralized, democratized, and transparent, Web 3.0 (Web3) is the new model of the Internet. Not only is it rewriting the rulebook on information and system decentralization, but it’s also changing how companies and consumers think about privacy.
Privacy is a big problem in the tech sector. Tech giants selling off customer data and continuous cyberattacks have decimated what little trust remained.
Web3 privacy could be the answer.
Moving beyond basic decentralization, Web3’s specialized tools and protocols, like on-chain data protection, zk-SNARKs, and more, could pave the way to a new world of consumer data privacy.
Here’s how.
Privacy Protocols: zk-SNARKs and Beyond
Web3 was built and designed to counteract the centralization and privacy problems plaguing its forebearer. Among the new privacy protocols currently being implemented are zero-knowledge proofs, particularly zk-SNARKs (zero-knowledge succinct, non-interactive argument of knowledge).
zk-SNARKs, despite their complex name, are deceptively simple. The protocol allows one party to prove they possess specific information without revealing it. Clever right? Unlike other similar processes, it’s 100% cryptographically secure, guaranteeing both parties complete verification without compromising confidentiality.
The applications are obvious: businesses can confirm a customer’s identity, verify a transaction’s legitimacy, review a customer’s financial history, or investigate a patient’s medical record without delving into any unnecessary details.
Consider these benefits:
- Enhanced Security: Sensitive customer data can be verified without ever being exposed, reducing the risk of data breaches.
- Trust-building: When customers know their privacy is guaranteed through cryptographic proofs, their trust in the service naturally increases.
- Compliance: zk-SNARKs can facilitate compliance with data protection regulations like GDPR by minimizing the exposure of sensitive information.
Pioneering CS with Web3 Privacy
Customer success (CS), a more proactive approach to account management, is at the forefront of Web3 technologies. Commonly associated with the SaaS (software-as-a-service) industry, CS is relying on new Web3 privacy protocols to protect customer data. One groundbreaking approach involves using on-chain encryption to store and transmit customer data.
On-chain encryption encodes sensitive consumer information directly onto the blockchain. Compared to traditional databases, the blockchain’s decentralized approach means the data isn’t stored in a single location, shielding it from would-be cybercriminals. Only the relevant parties can access it.
Next, privacy keys in customer interactions are another frontier. These serve as digital identities – think of them like a virtual passport or driving license – granting ownership and control over the data.
Given the power of these privacy keys, CS operations must handle them with the utmost care, employing robust key management systems to prevent unauthorized access and potential data breaches.
Companies are already adopting multi-signature wallets and hardware security modules to secure the process further. These wallets usually require multiple validations before executing a transaction.
Adapting to Web3 Privacy Standards
As companies transition their customer data systems to Web3 technologies, both human and technical elements will have to adapt to the new privacy standards. Here’s how:
- Evaluate current processes to identify gaps where Web3 technologies like smart contracts or zk-SNARKs could be beneficial for enhanced privacy and efficiency.
- Re-engineer existing customer onboarding procedures to incorporate elements like on-chain encryption and private key management.
- Update compliance policies to align with the capabilities and requirements of blockchain-based privacy features.
- Train CS teams to understand blockchain fundamentals, cryptographic techniques, and privacy-centric customer support.
- Roll out new standard operating procedures focusing on maintaining customer privacy, from initiating interactions to resolving issues.
Roadblocks and Solutions
As with all significant technological innovations, adopting Web3 privacy protocols is not without challenges. Common issues include the technical complexities of the blockchain, smart contracts, and cryptographic techniques like zk-SNARKs – even the terminology can be daunting to CS teams and customers.
To navigate these issues, companies may consider simplifying the process as much as possible to smooth protocol adoption. Simplified interfaces and abstraction layers, renaming complicated jargon, and providing helpful resources to help onboard customers and professionals to this new paradigm. Indeed, training programs can assist CS teams in understanding these technologies, which, in turn, can help educate your customer base.
The Road Ahead
As the Web3 sector continues to evolve, expect the unexpected. Nobody could have predicted the rise of social media and eCommerce after the launch of Web 2.0. In the realm of customer privacy, here are some potential advancements to keep your eye on:
- zk-STARKs, an improvement over zk-SNARKs, offer greater scalability and do not require a trusted setup.
- Fully Homomorphic Encryption could allow for computations on encrypted data without ever needing to decrypt it.
- Secure Multi-Party Computation, which enables data privacy even while multiple parties are involved in processing it.
New technologies, like those above, will further fuel the shift towards decentralized identity solutions, delivering on the Web3 promise of greater consumer ownership of data. Furthermore, increased integration of AI with blockchain could allow for real-time, privacy-centric customer support. Such integration would offer a highly personalized yet entirely private customer experience.
Finally, it’s plausible that businesses will start offering different levels of privacy customization, allowing consumers to select how much or how little of their data is used. This would be especially relevant in loyalty programs, personalized recommendations, and targeted marketing, where customers might want to benefit from personalization without compromising their privacy.
Closing Thoughts
From leveraging cutting-edge privacy protocols like zk-SNARKs to adopting decentralized identity solutions, the future of CS operations is gearing towards an environment that values customer data protection as much as it values customer satisfaction. It’s the ultimate promise of Web3 privacy.
Eager to integrate cutting-edge Web3 technologies into your CS operations? Let’s connect. We specialize in guiding businesses like yours through the complexities of decentralized technologies, helping you redefine customer trust and data security in the digital age.
Written by Irene Patrikios Clark,
Web3 Customer Success Specialist.
Sources:
https://www.gartner.com/en/digital-markets/insights/what-is-web-3-0
https://www.cmswire.com/customer-experience/how-will-web3-improve-the-customer-experience/
https://blog.equinix.com/blog/2022/06/06/web3-and-what-it-means-for-data-in-the-future/