Doughnuts: Satisfying a Growing Appetite for Privacy and User Convenience
Doughnuts don’t typically conjure up images of decentralised tech, but blockchain company Centrality hopes to change that.
So, what exactly is a Doughnut? In short, Doughnuts expand on the distributed nature of Google’s macaroons, but more closely emulate the functionality of web-tracking cookies. Although each is unique, all have the same objective — to curate the user experience through personal data collection.
However, what sets each protocol apart is their data collection mechanism. For instance, when using centralised network infrastructure, cookies are created by websites and stored on the user’s device without consent, for later use. Cookies also don’t have a standard for indicating user consent. They obtain user information and store it for their use. In contrast, Doughnuts are designed to be stored by consenting users, allowing users to only share select information. Doughnuts also provide a standard for proving user consent. This dynamic will enable companies to get the same crucial details while preserving user privacy and maintaining customer convenience. Perhaps most importantly, this new level of transparency builds trust.
With this new understanding, we can begin to assess how Doughnuts satisfy a growing appetite for privacy and convenience around the globe.
The Decentralisation of Data
To understand doughnuts, it remains crucial to recognize the infrastructure involved in our online interactions. As a centralised technology, cookies operate on conventional client-server networks. By using this architecture, all user information is gathered and stored in one location. Consequently, these networks operate with a single point of failure, making them more susceptible to hacks and technical glitches.
In recent years, we’ve seen the aftermath of this reality. Since the Cambridge Analytica scandal, security vulnerabilities have only become more prolific — especially in the realm of financial services. And while consumers have the most to lose in the event of a data breach, companies also suffer the consequences of compromised central servers. According to the 2019 Cost of a Data Breach Report from IBM, the average data breach cost US companies $3.54 million in 2006, reaching $8.19 million in 2019. These figures represent a 130% increase over 14 years.
Whether built on a centralised or decentralised architecture, Doughnuts protect user data by disassociating it with a specific identity. As mentioned, users can also decide what information they’re willing to share, and when. However, as with any new technology, interoperability remains a critical consideration.
The Interoperability Dilemma
Unlike legacy technology like cookies, doughnuts achieve interoperability between centralised and decentralised platforms — on and off-chain. This dynamic is crucial given the notoriously segregated blockchain ecosystem. According to McKinsey, 10% of global GDP will be locked in blockchain by 2027. However, the 2019 Deloitte Blockchain Survey still reports implementation (replacing or adapting existing legacy systems) as the primary hurdle to more significant enterprise investment.
Reflecting on these figures, it’s apparent that doughnuts play a crucial role in easing the transition between centralised and decentralised technologies. As this transition continues, protecting user privacy will be vital to maintaining the legitimacy of decentralised technology.
CentraPass: Bringing Doughnuts to the Sky
The team at CentraPass highlights web page visits as only one example of how user data is taken without being offered. Despite new regulations like GDPR, a significant portion of data collection occurs without user consent or knowledge. In response to this, CentraPass advocates for a different approach — why not just ask for it? By engaging users directly on transparent terms, market research companies still gain vital insights, and users protect their identity — it’s a win-win.
How is CentraPass Using Doughnuts?
For the company’s first foray into the world of Doughnuts, CentraPass is developing an ID system that saves travellers time and simplifies travel. It also aims to help tourism companies personalise their customer experience while generating more value.
The in-flight entertainment system allows passengers to store their personal preferences on their mobile phones. Using a QR code on the back of the passenger’s seat, the airline can access this information during a flight, without the passenger sharing anything else about themselves.
Why Use Doughnuts?
You will recall that Doughnuts afford users control of their data. This means that only they decide how their information is collected and used. The in-flight entertainment system uses Doughnuts by compiling only personal preferences, not the passenger’s personal information. Such an arrangement facilitates the collection of valuable information without associating it with one particular person.
As mentioned, you can collect the same amount of data as any other platform, but now you’re asking the right questions.
“You remember what I want you to, but you don’t know anything else about my identity.”
Bringing Doughnuts to the People
In addition to those projects already underway, there is a myriad of potential use cases for Doughnuts. Whether they are implemented on a distributed or client-server network, Doughnuts provide ample opportunity to improve existing infrastructure.
Rewards Programs
AirMiles and other rewards programs often track user data with the intent to decipher consumer buying habits — and it works. However, by using Doughnuts, companies can obtain the same information without obtaining an individual’s identity.
Post Secondary Education
At the majority of post-secondary institutions, students receive a student ID number that tracks their activities on campus. These services might include the book store, food vendors, and residence services. Using Doughnuts, post-secondary institutions can collect this data in the same way, without uncovering the identity of a student.
Healthcare Collaboration
The healthcare industry handles sensitive patient information, and privacy remains paramount. Doughnuts can facilitate the sharing of medical data around the world without the need to identify patients. This outcome is particularly welcome for medical studies and pharmaceutical trials. Medical conditions are already studied empirically, and personal patient information is of no consequence.
We’re only getting started. If you want to know more about Doughnuts head to our Github page https://github.com/cennznet/cennznet/wiki or https://cennz.net/doughnut/
