data analytics

The InterPlanetary File System is a protocol used online to distribute and access data. Anything from websites and chat clients to tax forms and email inboxes take advantage of this decentralized technology. We wanted to dive deeper into the technology to examine its nascent days, its future, and the impact it currently has on the technology landscape. How does decentralization benefit small businesses, and how does it protect us as individuals from Big Tech companies like Google and Meta? 

This week, we are revisiting a blog from 2019 in which we asked AXEL’s own developers about IPFS. One of our AXEL developers that will be answering our questions is Rick Stiles, a veteran of AXEL, SVP of Products and IP, and a veritable encyclopedia of blockchain information. 

Q: In the previous blog, we asked, “What inspired you to develop AXEL IPFS”? And you answered that the next evolution of computing is distributed. IPFS or something very similar is going to be the basis of distributed storage. With so many advancements that have taken place, is this still the correct answer in 2022? 

Yes. Decentralized and distributed computing is absolutely still the answer. But decentralization itself isn’t just about getting the equipment spread out and closer to the users; it’s also about decentralizing the control of the network. Blockchain networks sit at the very heart of the decentralization initiative. These networks are democratized through the use of consensus mechanisms. The AXEL network uses Masternodes to perform transactions and achieve consensus. Since these Masternodes are owned and operated independently, the network’s power and control are governed by the network, not by an individual or a corporation. IPFS is the perfect complement to a decentralized network as it is an open-source file storage and management operating system designed to enable interoperability across networks and domains. By combining these two powerful technologies, true decentralization of network resources and control can begin to grow.

Q: What are we talking about when we talk about IPFS?

IPFS (Interplanetary File System) is a protocol. It’s designed specifically for storing and sharing data in distributed and decentralized file systems. IPFS is open-source, meaning anyone wishing to participate in the network is welcome to do so. Unlike typical file storage protocols deployed independently by cloud providers, IPFS creates interoperability across networks and domains, expanding the reach of file access beyond typical localized cloud solutions.

Q: What are some benefits of decentralizing your storage over a centralized method like Google Drive? 

Decentralized storage puts your files closer to where you need them. In a typical decentralized networking configuration, your access point to your files will be geographically closer to you in most cases. Decentralization also means that the traffic on the network isn’t all being routed through a centralized hub. This enables faster access and dramatically reduces the upload/download and access times during peak traffic hours. Yet another benefit of decentralization is in file security. It’s far more challenging to hack into a file if you don’t know where it resides. Larger companies hosting file services are routinely targeted by nefarious entities seeking to gain access to private data.

Q: How does the decentralized nature of IPFS benefit small businesses?

As I shared previously, decentralization brings your content closer to you, giving you faster access times and more flexibility with file storage. Another significant advantage is file privacy and security. In a typical cloud storage configuration, encryption is offered as an added measure of protection to prevent unauthorized file access. The problem with this approach is that the companies providing the encryption are also holding all the encryption/decryption keys. This means that unauthorized people can still access your files since you (the file owner) are not directly in control of your encryption/decryption keys. Decentralized networks (like AXEL) don’t hold the keys to files stored within the IPFS repositories. These keys are tied directly to you, the users. So, you are in complete control of the privacy and security of your digital content.

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We see in 2022 that IPFS technology has become more widespread over the last three years. As a storage solution, IPFS has been placed in the hands of the everyman. Anyone seeking end-to-end encryption can find it with a click and drag rather than seeking a bespoke solution or an in-house developer.

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Q: AXEL IPFS will allow our users to immediately and securely distribute their data worldwide for personal or business use. Is this still the most exciting aspect of IPFS?

For the user, that’s a very exciting aspect of IPFS. As a developer, the migration of business networking from a centralized to a decentralized configuration, combined with interoperability across networks, is the most exciting aspect of IPFS.  

Decentralization of resources also means decentralization of control. By decentralizing control of these global networks, users have more options. For example, there used to be just a single telephone company in the USA. “Bell Telephone” was the company. If you wanted to make a phone call, you did it through Bell Telephone. Then came divestiture. Divestiture broke the telephone companies into much smaller groups with much smaller service areas. This meant that those companies had to battle for customers and focus on better products and better service to gain users, even though they were all providing access to the same network. If everyone uses IPFS to store their digital content, then you have far more choices in how you manage your content and the gateways you use to access your content. This goes a long way in the unification of global storage and networking.

Q: In 2019, we initially asked if there is a future for IPFS and what industries will adopt it first. Were you right in your answer?

Yes. The technology researchers and developers focused on Web 3.0 are still working diligently towards integrating and expanding IPFS networking and storage services. As expected, others have also joined the journey of IPFS storage. Largely, these industries and disciplines have a much greater need for privacy and security. The old saying “necessity is the mother of invention” is true in the case of IPFS. Companies and individuals are becoming far savvier regarding the privacy and security of their files and personal data. So they seek out more private and secure networks to facilitate the management of their data. IPFS fosters both interoperability and enhanced privacy and security. 

Q: We previously talked about IPFS storage as “an evolution” of cybersecurity. What are some strides in cybersecurity you’ve seen over the past three years that IPFS has had a hand in?

Transport encryption is probably one of the top advances in IPFS. Encryption itself provides privacy and security for contents at rest (while being stored). An example of this would be a spreadsheet to which you’ve assigned a password. To open that file, you would need the password. As would anyone you shared that file with. Transport encryption protects the file while being sent from one IPFS node to another. This prevents a third party from viewing the contents of a file while it is in transit—pretty cool stuff.

Q: We often hear champions of Web 3 tell their audiences that decentralization is the future. Why is that?

As I shared earlier, decentralization isn’t just about geographically distributing the network elements across a wide area, making transaction times faster. It’s also about the decentralization of the control of these networks. That’s where the real excitement lies. Taking the control out of the hands of a single governing entity or group and putting that control into a democratized network makes IPFS more of a public utility. One that is owned and operated by the public. This keeps access and availability very high while also keeping the costs of services low.

Q: What makes IPFS storage an integral stepping stone to establishing Web 3?

Web 3.0 is all about the decentralization of network control. IPFS being open source and bringing interoperability across networks and devices gets us closer to establishing Web 3.0. When the internet first appeared, it was free access and free information for everyone. It was indeed a public utility. Now the internet is very much controlled by a handful of major corporations that monetize users’ personal information to grow their power and reach of these corporations. Web 3.0 is a movement towards returning the power and control of user information to the user, preventing it from being monetized without our approval. If Web 3.0 were a highway, it would be free, open, and winding. The current global internet system is more like a toll road. Which would you rather drive on?

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Early adopters of IPFS  infrastructure have been quietly building Web 3.0  spaces in ways that don’t rely on cryptocurrencies or buzzwords. IPFS is a structure that uses blockchain networks and heavy encryption in a practical manner as we speak. Web 3.0 has found its true footing in storage solutions and remote work initiatives. 

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How does AXEL use IPFS to shore up its digital defenses?

By design, IPFS is far more robust from a security standpoint than centralized storage. Every year, we see more and more news stories about massive data breaches affecting millions of lives. The problem lies in the fact that these massive data repositories are centralized. They store all user/client data in the same place(s). This makes them easier for hacker targets because they know all the data is stored in the same repository. So you can attack a large storage target and get massive amounts of information for your efforts. IPFS is specifically designed to support decentralized and distributed storage. So all of the information is not in the same place. By breaking up the files and storing them across a network swarm instead of a localized storage repository, IPFS is far more secure simply because it’s more difficult for a nefarious actor to target the stored content because it’s spread out.

Q: Are there any thoughts you’d like to leave us with?

Web 3.0 is coming. Decentralization of networking control and distribution of network storage and resources will bring us closer to a new web experience that puts everyone in control of their content, their identity, and their privacy and security. AXEL is keenly focused on bringing Web 3.0 to the forefront. We welcome you to join us on our journey as we work with other pioneers to bring us closer to Web 3.0

IPFS isn’t just a storage solution for small businesses. It’s a technology that acts as the modern crowbar, prying centralized control away from tech companies that ask us to put our faith in them. The decentralized storage and in-transit encryption IPFS provides is indeed the future of security. Still, the real utility lies in the fact that it gives digital privacy and security back to consumers and business owners.

Join AXEL

You can try AXEL Go Premium with all features unlocked free for 14-days. Sign up today and see how AXEL Go can improve your workflow, bulwark your organization’s cybersecurity, and pave the road to a better internet.

When we send our students off to school, we trust that they are being protected by teachers and curriculum to the administration and infrastructure. Education is one of the greatest institutions civilization has, so when we find gaps in the structure, they should be taken seriously. American schools have been experiencing several data leaks in the recent past. We want to talk about where they’re happening, how they’ve taken place, and what we can do to protect our student’s data once it’s been handed off to our education system. 

How Did This Happen?

Most cyberattacks are a product of neglect. Phishing scams, ransomware attacks, and social engineering schemes rely on finding a hole in an organization’s cybersecurity plan. Many businesses fail to take a preventative stance when it comes to defending their digital assets, preferring instead to save in the short term. When it comes to business, this decision is often motivated by profit, but when it comes to public schools and their lagging technology, it’s more likely an act of necessity.

In The United States, public schools get overwhelming funding through property taxes and local budgetary expenditures. This, unfortunately, leaves many districts underfunded if located in an area where tax revenue is more scarce. This creates a tight budget for a system that requires a lot of money to run. Across the board, less than 13 percent of a public school’s funding comes from federal sources^[1]. 

With tight budgets and a lack of support from federal coffers, public schools have to choose. Understandably, money is spent on the physical needs of the students. Keeping the lights on, feeding children, and giving them a comfortable environment to learn in tends to take top priority. However, this means hackers are discovering vulnerable and unattended storage solutions ripe for the picking. Since 2005 nearly two thousand data cyberattacks have taken place on public schools in America, hemorrhaging 28.6 million student records^[2].

What Data Are We Losing?

If you’ve never registered a student in school, it’s easy to think that schools are just losing grades or detention records. If it were that trivial, we wouldn’t be seeing the loss of millions of student records. In a cyberattack that took place in January of 2022, a breach of Illuminate Education, a software company the New York City’s Department of Education uses to track grades and attendance, gave a hacker access to students’ names, birthdays, ethnicities along with their English-speaking, special-education and free-lunch statuses^[3]. In the case of this high-profile breach, no social security numbers or bank information was lost, but 820,000 individuals had their personal information flung to the wind through no fault of their own.

In the case of New York City’s cyberattack, students and their families got away without losing anything ruinous, and, in some cases, a security breach ends up being a district-wide perfectly synchronized Rickroll at the hands of a savvy senior^[4]. Those stories are in the minority. We see millions of students losing their social security numbers along with every single piece of identifying information before they’re even old enough to drive^[5], and these attacks cost school districts well over $6 billion of their already limited budgets^[6].

Taking a Proactive Stance

Protecting data in school systems will require work. In the modern age, there’s no way around that. Encrypting data, decentralizing storage systems, and protecting storage solutions with more than a password written on a stray sticky note is the key to the fight against school data breaches. With a coordinated push and a little investment, American schools can reclaim the billions of dollars they’ve lost to data breaches and redirect those funds back into the education system. We here at AXEL have been building a platform that protects the security and privacy of any student, teacher, or small business.

You can try AXEL Go Premium with all features unlocked free for 14-days. Sign up today and see how AXEL Go can improve your workflow and harden your organization’s cybersecurity.

References

[1] “Public School Revenue Sources – National Center for Education Statistics” Accessed April 7, 2022. https://nces.ed.gov/programs/coe/pdf/coe_cma.pdf.

[2], [5] “US Schools Leaked 28.6 Million Records in 1,851 Data Breaches since 2005.” Comparitech, January 21, 2022. https://www.comparitech.com/blog/vpn-privacy/us-schools-data-breaches/#:~:text=US%20schools%20leaked%2028.6%20million%20records%20in%201%2C851%20data%20breaches%20since%202005,-Sam%20Cook%20Data&text=Since%202005%2C%20K%E2%80%9312%20school,more%20than%2028.6%20million%20records.

[3] Bamberger, Cayla, and Jesse O’Neill. “Personal Data of 820,000 NYC Students Compromised in Hack.” New York Post. New York Post, March 27, 2022. https://nypost.com/2022/03/26/nyc-students-have-personal-data-hacked/. 

[4] Hanson, Melanie, and Fact Checked. “U.S. Public Education Spending Statistics [2022]: Per Pupil + Total.” Education Data Initiative, March 21, 2022. https://educationdata.org/public-education-spending-statistics#:~:text=States%20contribute%20a%20total%20of,funding%20is%20equivalent%20to%202.62%25. 

^[4] Tangermann, Victor. “Teen Hacks School Computer System, Rickrolls Entire School District.” Futurism. Futurism, October 14, 2021. https://futurism.com/the-byte/teen-hacks-school-computer-system-rickrolls-entire-school-district

^[6] Blacher, Mitch. “Despite Billions in Federal Money, American Schools Remain Vulnerable to Cyberattacks.” WJLA. WJLA, March 7, 2022. https://wjla.com/features/i-team/school-cyber-attacks-hacks-records-federal-money-vulnerable-america-us-dc-maryland-virginia.

In the age of the internet, we’ve seen the importance of protecting the privacy of regular citizens online. Big Tech companies have proven they’re willing to take advantage of lax legislation. Facebook has faced lawsuits for collecting biometric data without permission^[1], Google uses so-called Dark Patterns to make opting out of data collection nearly impossible^[2], and Amazon’s Echo is essentially a privacy leak right in the middle of our homes^[3]. In light of this privacy faux pas, we would like to take some time to audit the current privacy landscape. 

Gaps in Privacy Law

Since May of 2018 when the European Union created the General Data Protection Regulation (GDPR), private citizens around the world have had their eyes opened to the potential that privacy laws have to protect them. The United States has been slowly but surely piecing together similar privacy protections from the Virginia Consumer Data Protection Act^[5] to the California Privacy Rights Act of 2020^[6]. Unfortunately, these have been coming from individual states, creating a digital protection patchwork quilt. The internet, however, doesn’t respect the borders of the 50 states. The patchy approach of United States legislation is insufficient to protect private citizens on the internet.

Congress should be looking to recreate what California has done with the California Consumer Protection Act (CCPA) on a federal level. This bill passed in 2018 intended to pass along several digital privacy rights to California citizens, including the right to discover what data these businesses have collected.

The CCPA requires businesses subject to its jurisdiction to give customers the ability to say no to the sale of their data. You may have noticed a “do not sell my personal information” link on more websites in recent memory. You have the CCPA to thank for that. 

The act in California and the GDPR has been an essential foundation when discussing the future of privacy online. Yet, the United States hasn’t seen a similar provision passed on the federal level, such as when they voted no on a bill that would have allowed the FCC to institute more stringent privacy protections ^[6]. If we dig a little deeper into this glaring Congressional oversight, perhaps the root cause of this federal reluctance is money. According to the Information Technology & Innovation Foundation, federalizing a bill like the California Consumer Protection Act would carve $122 billion out of the US GDP every year^[7]. 

These costs come in the form of compliance costs to businesses that handle or sell private data. When bills that affect private data go into effect, businesses need to hire on customer data stewards and they become subject to time-consuming privacy audits. These additional hires and audits require redirected capital to maintain secure storage solutions and dedicated labor forces for resources to fulfilling customer data requests.

Big Tech’s Loopholes

Big Tech companies like Apple, Google, and Microsoft, or smaller companies like Ring (before they were acquired by Amazon) have undoubtedly brought us creature comforts previously unheard of every year. Online shops that predict our needs, smart home devices that automate our morning routines, and photo albums that automatically organize your shots based on object and facial detection streamline our lives like never before. These companies tend to make these technological strides while trampling — time and again — on our reasonable expectation of privacy. Big Tech has been delving deeper into the world of facial recognition software and using our faces to do it. Social media sites tend to be where the average user saves their vacation photos and other precious memories. In the last few years, these photos have become algorithm food. Data that users assumed would be housed safely on social platforms without being monetized and meticulously annotated in the name of research or profit has been used to create an ever more accurate database bought and sold to third parties without our say in the matter. 

Google is currently facing scrutiny from the Attorneys General in Washington D.C. and Texas for using “dark patterns” to extract location data from users that would have otherwise opted out of such tracking. Dark patterns are design tricks that use social engineering or deceptive interface design to push users towards harmful decisions they otherwise would not have made. The suit in question cites the fact that users unwilling to have their location data tracked and sold by Google are effectively boxed out of services provided by non-Google companies like Uber until they give Google permission to collect their data^[8]. These suits are claiming that Google violates D.C.’s Consumer Protection Procedures Act and Texas’ Deceptive Trade Practices Consumer Protection Act. It is worth noting that Google would have a more challenging time extracting data from customers if these protection acts had been implemented on a federal level.

Privacy Without Compromise

We believe in an internet that doesn’t take advantage of its users. To that end, we’ve built our business on minding our own business. Our decentralized file-sharing servers create a space online for your data that won’t be sold to a third party or glimpsed by prying eyes. While we advocate for privacy laws that give citizens their privacy back, we’ll work to keep your data private as best we can.

You can try AXEL Go Premium with all features unlocked free for 14-days. Sign up today and see how AXEL Go can improve your workflow and harden your organization’s cybersecurity.

References

[1] “How to Avoid Unwanted Photos on Social Media.” The Wall Street Journal. Dow Jones & Company, January 23, 2022. https://www.wsj.com/articles/how-to-avoid-unwanted-photos-on-social-media-11642933804. 

[2] [8] DeGeurin, Mack. “Google Illegally Used Dark Patterns to Trick Users Into Handing Over Location Data, State AGs Say.” Gizmodo. Gizmodo, January 24, 2022. https://gizmodo.com/google-lawsuit-location-data-attorneys-general-1848410222. 

[3] Garfield Benjamin Postdoctoral Researcher. “Amazon Echo’s Privacy Issues Go Way beyond Voice Recordings.” The Conversation, April 8, 2021. https://theconversation.com/amazon-echos-privacy-issues-go-way-beyond-voice-recordings-130016. 

[4] Ashley Johnson and Daniel Castro. “Why Congress Should Pass Data Privacy Legislation in 2022.” The Hill. The Hill, January 24, 2022. https://thehill.com/opinion/cybersecurity/591022-why-congress-should-pass-data-privacy-legislation-in-2022/. 

[5] “Virginia Passes Comprehensive Privacy Law.” Gibson Dunn, March 8, 2021. https://www.gibsondunn.com/virginia-passes-comprehensive-privacy-law/. 

[6] “California Consumer Privacy Act (CCPA).” State of California – Department of Justice – Office of the Attorney General, March 28, 2022. https://oag.ca.gov/privacy/ccpa. 

[7] Fung, Brian. “The House Just Voted to Wipe Away the FCC’s Landmark Internet Privacy Protections.” The Washington Post. WP Company, December 5, 2021. https://www.washingtonpost.com/news/the-switch/wp/2017/03/28/the-house-just-voted-to-wipe-out-the-fccs-landmark-internet-privacy-protections/. 

The most critical tool in any business belt is the ability to quickly react to unforeseen circumstances — second to that is the ability to learn from them. Offices all across America had to learn how to deal with a workforce scattered to the winds during unprecedented times. Guest rooms across the nation became offices, Zoom was the water cooler, and keeping internal documents safe on the internet suddenly became a much sharper priority. As we slowly, but surely, return to the office one thing is for sure: we’ll be returning with a drastically altered view of the workplace.

Tools Obtained by Working from Home

Working from home, initially, was a contentious topic. How would employees fare working ten feet away from their couches? What was going to keep them out of their pajamas and in the right mindset? Would productivity plummet in service of the family’s cat and dog? 

A few years of embracing remote work has shown quite a precipitous increase in productivity. The workforce is filled to the brim with people that understand their own natural rhythms, people that are driven to do good work for the sake of their own pride^[1]. When remote work swept the nation, a wide majority of employees reported increased satisfaction with their workplaces to go along with the increased rate of work they were producing from their home offices. 

Additionally, workplaces suddenly had access to a deeper well of talent. With remote work, the most qualified candidates were no longer pulling themselves from the pile of applicants because of a long commute. Businesses operating out of an expensive business park were able to drastically decrease overhead by relocating to less expensive areas — no longer needing a city center to consolidate their talent — or by closing their offices altogether^[2].

Reports of increased job satisfaction, higher output, and depressed overhead have been convincing evidence for some of the tech giants, you know, some of the most valuable companies in the modern world. Remote work is taking a permanent spot in their workplaces^[3]. 

Benefits of the Office

Remote work is all well and good, but the reality of returning to the office is still upon us for a good reason in many cases. The truth is, some businesses and their work culture thrive in person. A good brainstorm in the writer’s room, an in-person negotiation with rapidly building rapport and lively handshakes, the joy of seeing your work friends after a weekend apart. These are all aspects of the office many of us crave.

Something as simple as laying your hands on a hard copy of a document is enough to dramatically change your relationship to your work. Abstract deals jotted down on paper hold a weight that digital backups never will^[4].

Not every business has the luxury of remote offices. Some of them need tightly-knit groups of employees with their heads together in real time, and there’s nothing wrong with that. Some offices have become expensive storage units, begging to be warmed with heated exchanges and feverish work. If that’s your business, then the return to the office is most likely a welcome one^[5].

How we can merge the two and Axel’s role

Now that so many workplaces have discovered the benefits of working remotely, these will be difficult to turn a blind eye to, even during The Great Return. Workplaces can still benefit from the lessons learned from remote work. Contracts can be negotiated with remote work provisions to net some of the best talent in the world, saving money and retaining crucial employees. Your bottom line can rest easy knowing that startups or small businesses are more than capable of thriving on a foundation of remote work. Most importantly, however, the strategies employed to keep businesses safe and effective through the internet can be effortlessly folded into central work models.

We can work with secure shared drives. We can work with decentralized servers that are easily accessed. We can work without worrying that one bad link will bring the office to its knees. With cloud-based file-sharing software increasingly intermingling with office life, the days of lost backups and forgotten thumb drives are about as relevant as floppy disk anxiety.

By keeping the same vigilance and flexibility remote work required of businesses in 2020 and beyond, we create offices that are smarter, work harder, and, most importantly, they become more private and secure.

About AXEL

Using a secure file storage system is the key to protecting your data from breaches and ransomware attacks. That’s where AXEL Go comes in. Offering military-grade encryption and decentralized blockchain technology, AXEL Go is the best way to protect yourself and your business from unauthorized cybercriminals. With privacy concerns not going away anytime soon, secure file-sharing is a necessity for businesses and individuals. If you’re ready to try the best protection, try two free weeks of AXEL Go here.

References

^[1] https://www.vox.com/policy-and-politics/2017/7/20/15821560/basic-income-critiques-cost-work-negative-income-tax

^[2] https://www.chicagobooth.edu/review/are-we-really-more-productive-working-home 

^[3] https://www.wsj.com/articles/mark-zuckerberg-and-metas-leadership-take-remote-work-to-the-extreme-11648040580?st=wvg8xkwmhcb9sme&reflink=desktopwebshare_permalink

^[4] https://www.protocol.com/newsletters/protocol-workplace/official-return-to-office?rebelltitem=5#rebelltitem5

^[5] https://www.cnbc.com/2022/03/08/return-to-office-why-executives-are-eager-for-workers-to-come-back.html

For years, the idea of advanced robots and machines completing common tasks has tantalized authors, filmmakers, and the general public. Works that took place in an idealized future, such as the 1960s animated sitcom The Jetsons, were immensely popular, and for good reason. Who wouldn’t want to live in a world where robots can vacuum your house, control your lights, or even start your car? This prevalence of these hypothetical technologies made everyone dream of a future where machines could handle many of the minute, everyday tasks that many abhorred.

Today, that future has undoubtedly arrived. With the necessary hardware, everyday people can tell their machines to turn on the lights, vacuum the house, and start their car. Many of the technological wonders that were fictionally highlighted in The Jetsons are a reality now. Simply put, we are living in an idealized future, thanks to artificial intelligence (AI). While AI has been in the works for decades, it has truly flourished in the past ten years. Now, nearly every new piece of technology utilizes AI in some form or another. So, as we enter a future that is likely to be dominated by artificial intelligence, it’s important to be aware of the history, uses, drawbacks, and future of this fledgling technology.

The History of AI

In the 1940s, neurologists discovered that the brain is powered by neurons, cells that can communicate using electricity. This breakthrough suggested that, if the brain could make decisions using electricity, so could a machine. Following this revelation, programmers and scientists worked vehemently to research the possibility of artificial intelligence. In 1950, famed computer scientist Alan Turing developed what he called an “imitation game” using artificial intelligence^[1]. In this game, there are three participants: A player who asks questions, a human who responds to the player’s questions, and a computer that responds to the player’s questions. While this test didn’t really determine if machines could think like humans, it determined if machines could come to the same conclusions as humans. While Turing’s experiment was only a game at the end of the day, it was a promising first step for the theory of artificial intelligence.

For decades after Turing, artificial intelligence remained mostly experimental. However, beginning in the 1990s, the exponential increase in computer processing power allowed AI to be developed into useful products. In fact, in 1997, IBM’s chess software, Deep Blue, became the first AI program to beat a reigning world chess champion^[2]. Additionally, in 2011, IBM’s question-answering program Watson handily beat two of Jeopardy’s winningest contestants in a match of the famous quiz show^[3]. While these two examples were only used in games, they publicly showed just how powerful AI could be.

However, during the development of these innocuous AI software programs, another form of AI was being developed as well: Facial recognition software. Although certainly different from quiz shows and chess programs, facial recognition programs use similar AI techniques to analyze faces from images. Using AI, these systems are able to analyze a face, then match that face to a picture in an existing database. As the technology advanced, businesses began to sell the technology nationwide, particularly to law enforcement groups^[4]. Ultimately, while innocent AI programs like Watson and Deep Blue enjoyed national press, programs that had serious consequences were being developed quietly as well.

The State of AI Today

In the business sector today, AI is utilized in nearly every facet of operation. One department that especially uses AI is marketing and customer acquisition. From automated emails to AI-powered chatbots, artificial intelligence can be used to advertise your business to new and existing customers. In human resources, AI can sift through applications quickly, allowing managers to spend less time searching for qualified candidates. In manufacturing, AI can track inventory and even anticipate demand^[5]. Today, the most successful businesses utilize artificial intelligence in order to maximize their efficiency. These powerful machines can do things at a speed that humans simply can’t reach. It’s no wonder why AI has been embraced so extensively by the business world.

While efficiency-maximizing AI has been welcomed around the world by businesses, more controversial forms of AI have been embraced as well. In recent years, facial recognition programs have grown more popular, and are being used by law enforcement, security companies, and even social media sites. Additionally, many AI programs built for consumers are little more than extra ways to collect data. For example, Amazon’s Echo device was one of the first AI assistants and quickly became popular after release. Soon, Amazon set the Echo’s price so low that the company was selling them at a loss^[6]. However, because of the vast amount of valuable data Amazon would get back, this strategy was sound. Ultimately, AI has become extremely popular for both businesses and consumers, significantly due to companies’ everlasting desire for our data.

Concerns of AI and Facial Recognition

Every AI program runs on datasets, but if those datasets are biased, then the entire program can be biased as well. And when it comes to bias, few programs are more criticized than facial recognition software. In fact, researchers found large amounts of racial and gender bias in AI programs sold by IBM, Amazon, and Microsoft^[7]. In this research, the author found the programs’ facial recognition software had an extreme amount of bias. For example, the software had less than a 1% error rate for lighter-skinned men, but a 35% error rate for darker-skinned women^[7]. This is because the datasets that these AI programs run on simply aren’t diverse enough. Unfortunately, these errors can have devastating consequences. False positives from facial recognition software have led to a countless number of unjustified arrests, disproportionately harming racial minorities^[8]. Although facial recognition has been helpful to some degree, its unequal consequences cannot be ignored.

While it’s true that AI programs can offer extraordinary benefits, those benefits don’t come free. In reality, they’re further eroding what little privacy we have left. We’re willingly buying listening devices from a massive company with a less-than-stellar record on privacy in exchange for convenience. While some people may be willing to make this sacrifice, it doesn’t have to be this way. The incredible benefits of AI don’t have to be paired with this massive violation of privacy.

So, what’s the solution for better AI? First, datasets need greater diversity, particularly in the case of facial recognition. In order to truly be effective, AI needs to be representative of the general population. But because of biased AI datasets, these programs are helping some, but actively harming others. Additionally, legislation ought to be passed that minimizes Big Tech’s reliance on data collection. Today, many people refuse to try the most popular AI programs because of their overreliance on data collection. If Big Tech became less obsessed with our data, we could enjoy the benefits of AI without trading away our information.

About AXEL

At AXEL, we know the best businesses have valued privacy for decades. Now, in a world full of cybercrime and data collection, digital privacy is more important than ever before. That’s why we created AXEL Go. AXEL Go uses military-grade encryption, blockchain technology, and decentralized servers to ensure it’s the most secure file transfer software on the market. Whether you need to transfer large files or send files online, AXEL Go is the best cloud storage solution. If you’re ready to try the most secure file-sharing app for PC and mobile devices, download AXEL Go for free here.

Footnotes

^[1] “Turing Test.” Encyclopædia Britannica. Encyclopædia Britannica, inc. Accessed March 16, 2022. https://www.britannica.com/technology/Turing-test

^[2] Saletan, William. “The Triumphant Teamwork of Humans and Computers.” Slate Magazine. Slate, May 11, 2007. https://slate.com/technology/2007/05/the-triumphant-teamwork-of-humans-and-computers.html

^[3] Markoff, John. “Computer Wins on ‘Jeopardy!’: Trivial, It’s Not.” The New York Times. The New York Times, February 16, 2011. https://www.nytimes.com/2011/02/17/science/17jeopardy-watson.html

^[4] Valentino-Devries, Jennifer. “How the Police Use Facial Recognition, and Where It Falls Short.” The New York Times. The New York Times, January 12, 2020. https://www.nytimes.com/2020/01/12/technology/facial-recognition-police.html

^[5] Marr, Bernard. “10 Business Functions That Are Ready to Use Artificial Intelligence.” Forbes. Forbes Magazine, December 10, 2021. https://www.forbes.com/sites/bernardmarr/2020/03/30/10-business-functions-that-are-ready-to-use-artificial-intelligence/?sh=2df649c43068

^[6] Smith, Rich. “Did Amazon Lose $100 Million Selling Its Most Popular Item?” The Motley Fool. The Motley Fool, January 8, 2018. https://www.fool.com/investing/2018/01/08/did-amazon-lose-100-million-selling-its-most-popul.aspx

^[7] Buolamwini, Joy. “Artificial Intelligence Has a Racial and Gender Bias Problem.” Time. Time, February 7, 2019. https://time.com/5520558/artificial-intelligence-racial-gender-bias/

^[8] Najibi, Alex. “Racial Discrimination in Face Recognition Technology.” Science in the News. Harvard University, October 26, 2020. https://sitn.hms.harvard.edu/flash/2020/racial-discrimination-in-face-recognition-technology/

If someone only watched Big Tech advertisements, they’d believe that these massive conglomerates are bastions of digital privacy. In the past few years, companies like Facebook and Google have inundated the airwaves with ads that highlight the companies’ efforts to protect user privacy. However, the one company that has worked the hardest to cultivate a secure and private image is Apple. Privacy was even the subject of a slick, wide-ranging marketing campaign for the company^[1]. Today, digital privacy is being marketed like a new product, and every company is claiming to value and protect your data. But how much of the marketing is accurate, and how much is just PR?

Here’s the truth: Big Tech corporations have taken steps to better protect users’ data in recent years, but there’s still a long, long way to go. Overall, it is a positive step that corporations are claiming to value digital privacy. After all, these widespread marketing campaigns have increased consumer awareness of digital privacy and its importance. However, while these companies claim they value privacy, they ultimately value the status quo more. This has led to the situation we’re in now: Companies are making small digital privacy improvements, primarily for good PR, but avoid going after the root of the problem.

What Steps Has Big Tech Taken?

You probably already know this, but Big Tech has mountains of data on billions of people around the world. These companies collect as much information as possible and then use that information to target you with specific advertisements. From simple things like name and date of birth to more private pieces of information like political affiliation, religion, and relationship status, Big Tech knows a lot about you, and they use this information to inundate your computer with personalized ads^[2]. And don’t think that ads are just a small part of Big Tech’s revenue. 98% of Facebook’s revenue comes from advertisements^[3], highlighting just how vital data collection is to these Silicon Valley corporations.

This is why you should take Big Tech’s privacy claims with a grain of salt. Collecting mounds of user data is the lifeblood of Big Tech giants, so they aren’t about to make any changes that significantly impact their bottom line. So the next time you see a Google or Amazon ad claiming that they care about data privacy, just remember how those companies really earn their money. Judging by their revenue streams, the Big Tech giants aren’t really technology companies — they’re middlemen between you and advertisers.

But here’s the thing: Some companies actually have taken positive steps to better protect users’ digital privacy. For example, Google is phasing out the third-party cookie, a notorious program that tracked users and permanently stored their data^[4]. Additionally, Apple has begun to allow users to “ask apps not to track” their data^[5]. These are undeniably positive steps that put more power in the hands of users. While these changes won’t end Big Tech’s data-hungry behavior, overall, it’s a positive development.

What’s Behind Big Tech’s Privacy Push?

Unfortunately, Big Tech’s changes don’t go nearly far enough. Most of the changes that Big Tech companies have implemented simply alter how companies handle data once it’s already been collected. Now, is Google’s alternative to the third-party cookie more secure? Definitely. But the company is still collecting your data and storing it on their servers in order to advertise to you. The fundamental process of data collecting has not changed one bit, making it seem that Big Tech companies are simply looking to score PR points, rather than committing to actual change. Could that change in the future? It’s possible, but remember: Big Tech’s main clients are advertisers, not us. Unless a new way to deliver targeted ads without data collection is discovered, the current situation will likely continue.

We may have to get used to incremental change, rather than a digital privacy revolution. After all, nearly every Big Tech company spends millions each year in lobbying to shoot down bills that threaten their data collection processes. In fact, Facebook alone spent over USD $20 million in 2021 to lobby Congress to oppose any new regulations that give too much choice to consumers^[6]. Big Tech companies don’t just stop at lobbying either. In Virginia, Amazon and Microsoft supported a privacy bill that, while adding some new regulations, failed to put power in the hands of users. The new bill is filled with loopholes and explicitly forbids users from suing tech companies for violating their privacy^[7]. Big Tech loves to talk a big game regarding digital privacy, but when it comes down to it, they’ll do everything possible to prevent changes to the status quo.

How to Make Big Tech Prioritize Privacy

The best way to prioritize user privacy is to pass wide-ranging, enforceable legislation that would actually make Big Tech uncomfortable. For so long, these companies have collected and stored mountains of data on billions of people, while only making trivial improvements to their digital privacy policies. Ultimately, that’s why we can’t trust Big Tech to regulate itself — they’ll never voluntarily change their fundamental business model. Therefore, it’s up to politicians and regulators to force Big Tech into making legitimate, lasting change for good.

One law that has made a significant impact is the European Union’s General Data Protection Regulation (GDPR). Under GDPR, websites must ask users for consent to collect their data, and it allows users to request the deletion of their personal data from a site^[8]. Make no mistake; these are genuinely positive steps toward empowering users. But for the people that live under GDPR’s jurisdiction, many feel that little has changed.

This feeling can be attributed to the “opt-out” nature of data collection under GDPR. Websites like Google and Facebook make it much easier to agree to data tracking than opting out of it. Agreeing to data collection requires just one click, while getting out of it requires navigating complicated options menus for every site. Big Tech knows that this model isn’t too disruptive, as the vast majority of people will simply accept tracking, rather than dealing with the headache of opting out. A truly effective solution would be to change data collection into an “opt-in” feature. Under this method, users would automatically be excluded from data collection, but could opt-in if they wished. Of course, this method would undoubtedly draw the ire of Big Tech, but it would be a significant improvement for data privacy. In 2019, Edward Snowden called GDPR “a good first effort … but it’s not a solution^[8].” Ultimately, although GDPR and other regulations aren’t as effective as we may have hoped, they’re still positive steps toward a more secure, private Internet for all.

About AXEL

Big Tech may not care about your digital privacy, but we do. At AXEL, we know millions of individuals and businesses demand affordable, secure, and intuitive file-sharing software. That’s why we created AXEL Go. AXEL Go uses military-grade encryption, blockchain technology, and decentralized servers to ensure it’s the most secure file transfer software on the market. Whether you need to transfer large files or send files online, AXEL Go is the best cloud storage solution. If you’re ready to try the most secure file-sharing app for PC and mobile devices, download AXEL Go for free here.

^[1] Wuerthele, Mike. “’Privacy. That’s iPhone Ad Campaign Launches, Highlights Apple’s Stance on User Protection.” AppleInsider. AppleInsider, March 14, 2019. https://appleinsider.com/articles/19/03/14/privacy-thats-iphone-ad-campaign-launches-highlights-apples-stance-on-user-protection

^[2] Moscaritolo, Angela. “What Does Big Tech Know About You? Basically Everything.” PCMAG. PC Magazine, January 18, 2022. https://www.pcmag.com/news/what-does-big-tech-know-about-you-basically-everything

^[3] “Facebook Ad Revenue 2009-2020.” Statista, February 18, 2022. https://www.statista.com/statistics/271258/facebooks-advertising-revenue-worldwide/#:~:text=In%202020%2C%20about%2097.9%20percent,increase%20in%20comparison%20to%20the

^[4] Low, Cherlynn. “Google Is Testing a New Replacement for Third-Party Cookies.” Engadget, February 28, 2022. https://www.engadget.com/google-topics-api-privacy-sandbox-third-party-cookie-replacement-130049935.html

^[5] Mayo, Benjamin. “What Does ‘Ask App Not to Track’ Mean?” 9to5Mac, April 27, 2021. https://9to5mac.com/2021/04/27/what-does-ask-app-not-to-track-mean/

^[6] Birnbaum, Emily. “Facebook’s Lobbying Spending Surged to a Record in 2021.” POLITICO. POLITICO, January 21, 2022. https://www.politico.com/news/2022/01/21/facebook-lobbying-spending-2021-527577

^[7] Tsukayama, Hayley. “Virginians Deserve Better than This Empty Privacy Law.” Electronic Frontier Foundation, February 24, 2021. https://www.eff.org/deeplinks/2021/02/virginians-deserve-better-empty-privacy-law

^[8] Hare, Stephanie. “These New Rules Were Meant to Protect Our Privacy. They Don’t Work.” The Guardian. Guardian News and Media, November 10, 2019. https://www.theguardian.com/commentisfree/2019/nov/10/these-new-rules-were-meant-to-protect-our-privacy-they-dont-work