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Is Virtual Reality the Future? Facebook Thinks So.

Facebook is now Meta. Well, kind of. Last month, Facebook changed its parent company’s name to Meta, a nod to the company’s growing focus on the “metaverse.” Now, this doesn’t mean you’ll be liking vacation photos on meta.com any time soon. The company that owns Facebook is now Meta, not the social network itself. But why did Facebook change its name? First and foremost, it signals a shift away from social media, toward a more unique (and less controversial) form of technology: Virtual reality. 

Although virtual reality has existed in some form for decades, the technology is now becoming advanced enough to offer legitimately useful features to consumers and businesses. For example, Meta showed off its VR prototype during its name-change announcement video. The company showed off a virtual meeting room filled with cartoon avatars. The goal, Meta states, is to create a virtual meeting place that is nearly indistinguishable from a real meeting place. With more people working from home than ever before, this appears to be a useful goal. After all, Zoom meetings simply don’t have the same amount of interactivity and socialization as in-person meetings. VR could very well become the future of work. However, the widespread adoption of VR technology is still a long way away.

The History of Virtual Reality

The origin, and even the definition, of virtual reality is disputed [1]. After all, modern VR headsets are what the public thinks of when “virtual reality” is mentioned, but technology that advanced simply didn’t exist just a few decades ago. However, virtual reality experiences have still existed for decades. One of the first items that could be considered a virtual reality product is the View-Master, a goggles-like device that showed stereoscopic photographs. When utilized correctly, the user’s entire field of vision was dominated by the three-dimensional image. Although primitive, the View-Master may have been the first virtual reality device to appeal to the general consumer. This product ultimately highlighted just how immersive future virtual reality technology could be.

Beginning in the 1960s, researchers began to realize the potential of this futuristic technology. Specifically, they began to utilize virtual reality for military and flight simulations [2]. This allowed soldiers and pilots to train under realistic circumstances. Throughout the 1970s and 1980s, virtual reality was mostly used as a training tool for professionals, as the technology was far too expensive for mass-market appeal. 

However, beginning in the 1990s, VR technology became advanced (and inexpensive) enough for companies to begin crafting virtual reality experiences for the general consumer. Ever since then, virtual reality has become intertwined with the gaming industry. In the early 1990s, video game giants Nintendo and Sega began creating virtual reality consoles, with marketing that promised to transport players to an immersive, realistic world [3]. The hype of virtual reality was at an all-time high. However, this optimism soon began to dwindle. In 1995, Nintendo released the Virtual Boy, a virtual reality video game console [2]. However, soon after its release, consumers were quick to point out the major drawbacks of virtual reality. The console itself was uncomfortable and dizzying, and only showed games in black and red [4]. For most consumers, this virtual reality product simply wasn’t realistic enough, and the console flopped.

Modern Uses of Virtual Reality

After the commercial failure of the Virtual Boy and other early VR headsets, the technology was mostly relegated to professional use. However, with the recent rise of newer, more realistic and more comfortable VR headsets, it may finally be time for virtual reality to enter the mainstream. 

While the VR market has undeniably grown, consumers still mostly see virtual reality as a cool gimmick, rather than a necessity. Today, most of VR’s use is for gaming, and while the industry has found a niche group of enthusiasts, just 34 million total headsets have been sold in the last five years [5]. Additionally, while the cost of virtual reality technology has dropped, headsets still aren’t affordable for all. For example, Oculus, a VR headset company owned by Meta, prices its cheapest headset at $299. While the technology has evolved and prices have dropped, committing to virtual reality is simply too much of a financial commitment for many.

The Future of VR

With Meta turning its focus to virtual reality, VR is certainly here to stay. But how will VR be utilized in the future? Will it become a business necessity, like Meta seems to think? Or could it continue to grow as a gaming product? Finally, can VR finally overcome its gimmick label? Simply put, there are a lot of questions about the future of virtual reality that we simply don’t know. However, a major company like Meta shifting its focus to virtual reality presents an opportunity to the industry that it has never had before. Meta’s massive, public commitment to virtual reality could usher in the widespread adoption of this emerging technology.

However, public acceptance of VR isn’t the only potential downfall to the industry. A common concern regarding virtual reality is the technology’s privacy and security. Modern VR headsets are filled with sensors, cameras, and microphones. Of course, headsets need this technology to function, but the data collected through this technology needs to be guarded securely. Put simply, virtual reality collects unique user information. With this information, advertisers can learn even more about you to sell their products. Even worse, there are no regulations for data collected through VR, further putting user privacy in the backseat [6]. So while virtual reality may offer new opportunities to connect and play, it also gives advertisers a new way to collect even more information on users.

Keep Your Data Safe with AXEL Go

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.

[1] Schnipper, Matthew. “The Rise and Fall and Rise of Virtual Reality.” The Verge. https://www.theverge.com/a/virtual-reality/intro.

[2] “History of Virtual Reality.” Virtual Reality Society, January 2, 2020. https://www.vrs.org.uk/virtual-reality/history.html.

[3] Karpf, David. “Virtual Reality Is the Rich White Kid of Technology.” Wired. Conde Nast, July 27, 2021. https://www.wired.com/story/virtual-reality-rich-white-kid-of-technology/.

[4] Greenbaum, Aaron. “Here’s Why the Virtual Boy Was a Complete Failure.” Looper.com. Looper, August 4, 2020. https://www.looper.com/233207/heres-why-the-virtual-boy-was-a-complete-failure/.

[5] Alsop, Thomas. “VR Headset Unit Sales Worldwide 2024.” Statista, July 19, 2021. https://www.statista.com/statistics/677096/vr-headsets-worldwide/.

[6] Maslin, Jared. “Concerns with Privacy in Virtual Reality.” Data Science W231 Behind the Data Humans and Values, March 2, 2021. https://blogs.ischool.berkeley.edu/w231/2021/03/02/concerns-with-privacy-in-virtual-reality/.

Devastating Data Breaches – Part 5: Facebook Dismisses Data Security

In the history of the Internet, no tech company may be more controversial than Facebook. Started in 2004 and initially limited to Harvard University students, Facebook quickly hit the mainstream as the premier social networking site. In just a few years, it overtook older sites like MySpace and Friendster, making it the go-to social network for hundreds of millions of people. However, this massive growth has not been without controversy.

Facebook has long been criticized for its record on privacy and security. From collecting mountains of information on individuals to its involvement in state-sponsored surveillance, Facebook’s record on privacy is shaky [1]. But even though billions are skeptical of Facebook and its security practices, it’s still the most popular social network in the world. Combined with its ownership of popular messaging app WhatsApp and photo-sharing app Instagram, Facebook has become one of the Silicon Valley giants where their main product isn’t a product or software, but users themselves. Because of this, it is in Facebook’s best interest to collect as much information as possible from its users. While this strategy certainly lines Facebook’s pockets with oodles of advertiser cash, it forces user privacy to take a backseat and puts user security at risk. Unfortunately, in 2019, this security risk became realized for hundreds of millions of people.

In honor of Cybersecurity Awareness Month, AXEL is writing about some of the worst leaks, data breaches, and ransomware attacks in history. Check out our previous posts about Yahoo, Marriott, Equifax, and Target to learn about what went wrong, what could’ve been done, and how each company responded to devastating data breaches.

Before The Breach

In 2019, Facebook was already facing the aftermath of another massive privacy mishap, the Cambridge Analytica scandal. With Facebook’s knowledge, Cambridge Analytica, a political data analytics firm, harvested data from 87 million Facebook accounts. It then sold this information to multiple United States presidential campaigns in order to inundate potential supporters with political advertisements [2]. 

Following the revelations of this data thievery, Facebook CEO Mark Zuckerburg even testified in front of Congress, along with taking out full-page advertisements in major newspapers, vowing to “ensure this doesn’t happen again [2].” Following an investigation, the Federal Trade Commission fined Facebook USD $5 billion, the largest fine ever levied by the United States government [3].

Put simply, Facebook was not seen in a positive light by many people. Its track record regarding data privacy had always been shaky, but this new scandal not only drew the ire of government officials, but the general public as well. After this scandal, all eyes were on Facebook to see if it would actually make changes to protect user privacy. Unfortunately, Facebook did not keep its promises for long. 

The Leak

In 2019, through a vulnerability in Facebook’s code, the personal data of 533 million Facebook users was stolen [4]. Concerningly, the perpetrators of this attack did not acquire the data through hacking or phishing, but simply by finding a vulnerability that allowed users to record millions of phone numbers from Facebook’s servers. In August 2019, Facebook patched this vulnerability, but was unaware of the stolen data. However, in April 2021, phone numbers of the 533 million users were posted to a hacking forum. This data mainly consisted of names and phone numbers, but some email addresses and birth dates were compromised as well [4]. Even worse, the data was posted for free on a public forum, meaning that any scammer or spammer with basic computer knowledge could access this stolen data [4].

While no financial or government data, such as credit card numbers or Social Security numbers, were posted, the release of phone numbers and corresponding names was a goldmine for scammers. Primarily, these cybercriminals could use this information to send phishing scams to unsuspecting users. While the attack could have been much worse, the leak of over half a billion phone numbers directly after Facebook’s previous data scandal was not received well by the general public.

Facebook did little to satiate the outrage following the leak. After the leak was publicly revealed, Facebook stressed that the leaked data was outdated (albeit, by only two years) and that the security flaw had already been patched. Additionally, Facebook refused to notify the affected users, stating that there was nothing that users could do to mitigate the consequences [5]. 

The Aftermath

While a leak that puts 533 million phone numbers at risk may sound like a big deal, for Facebook, it’s just a drop in the bucket of criticism the company has received regarding user privacy. After all, the Cambridge Analytica scandal forced Zuckerberg to testify before Congress. For Facebook, this is a run-of-the-mill data breach. In fact, in a leaked email detailing the company’s response to the breach, a Facebook employee stated “We expect more scraping incidents and think it’s important to both frame this as a broad industry issue and normalize the fact that this activity happens regularly [6].”

Unfortunately, it appears Facebook is not planning on making substantive changes regarding user privacy. This isn’t particularly surprising, as Facebook has become a giant because of its willingness to collect user information. However, just because Facebook is slow to change doesn’t mean you have to be a victim. You can protect your data by following simple cybersecurity tips, like not clicking unfamiliar links and double-checking email addresses. If Facebook isn’t going to protect your privacy, it’s up to you to do it yourself.

Protect Your Data with AXEL Go

Another way to protect your privacy is to use a secure file-sharing software. Offering industry-leading encryption and decentralized blockchain technology, AXEL Go is the best way to protect yourself or your business from unauthorized cybercriminals. Featuring a myriad of unique privacy features, AXEL Go is the best way to keep your data safe. If you’re ready to try the best protection, get two free weeks of AXEL Go here. 

[1] Greenwald, Glenn, and Ewen MacAskill. “NSA Prism Program Taps in to User Data of Apple, Google and Others.” The Guardian. June 07, 2013. https://www.theguardian.com/world/2013/jun/06/us-tech-giants-nsa-data.

[2] Meredith, Sam. “Facebook-Cambridge Analytica: A Timeline of the Data Hijacking Scandal.” CNBC. April 10, 2018. https://www.cnbc.com/2018/04/10/facebook-cambridge-analytica-a-timeline-of-the-data-hijacking-scandal.html.

[3] Nuñez, Michael. “FTC Slaps Facebook With $5 Billion Fine, Forces New Privacy Controls.” Forbes. July 24, 2019. https://www.forbes.com/sites/mnunez/2019/07/24/ftcs-unprecedented-slap-fines-facebook-5-billion-forces-new-privacy-controls/.

[4] Holmes, Aaron. “533 Million Facebook Users’ Phone Numbers and Personal Data Have Been Leaked Online.” Business Insider. April 03, 2021. https://www.businessinsider.com/stolen-data-of-533-million-facebook-users-leaked-online-2021-4.

[5] Farmer, Ryan. “Facebook’s April 2021 Data Breach Explained.” StrongVPN Blog. April 30, 2021. https://blog.strongvpn.com/facebook-data-breach-april-2021/.


[6] “Facebook Downplays Data Breach in Internal Email.” BBC News. April 20, 2021. https://www.bbc.com/news/technology-56815478.

Digital Assistants are Invading your Privacy

Digital assistants have been a part of daily life for millions of people since Apple acquired Siri in 2011 and integrated it into the iPhone 4s. Now, all the big players are in the game. Google, Amazon, and Facebook are competing to be the consumer’s choice for in-home digital help. While the commercials make them look convenient and nearly indispensable for modern life, the truth is users are inviting Big Tech surveillance into their most private moments. In this blog, we’ll make the argument that you should think twice before using one of these services.

Privacy nightmares

The digital assistant marketplace is pretty crowded. Although many smaller companies and startups are coming up with solutions in the space, Apple’s Siri, the Amazon Echo, Google Home, and Facebook Portal dominate the sector. All of Big Tech wants to have an always-on, AI-enabled voice recorder in your home. The question consumer should be asking themselves is ‘Why?’

Well, first off, it’s a growing industry. The market size is over $3 billion this year, and analysts believe it could grow to be an over $40 billion industry by 2027[1]. Obviously, this type of explosive growth is going to attract Big Tech investment.

But what other incentives are there? Well, we know that all of the major tech corporations have had issues with privacy violations in the past. Even Apple, which makes its money from hardware sales and has less reason to harvest mass amounts of user data, has had public privacy issues. To their credit, they at least seem to listen to privacy advocates and either change their policies or at least make them transparent. Unfortunately, you cannot say the same for the others in the space.

Amazon wants to sell more retail items and therefore wants as clear of a profile as possible on its users. That way, it can advertise to them more efficiently. Google and Facebook are even worse. Their entire business models revolve around offering free services to consumers. Nearly all of their revenue comes from personalized advertising. Thus, they have the biggest incentive to collect and analyze everything their customers do while using their products (and many times even after they’re finished using them!)

The pitch

So knowing that these companies don’t take privacy seriously, why do they keep attracting new users? They make a compelling pitch about modern convenience. We live in a society where time is at a premium, and any new gadget that can save a few precious moments is the next best thing. Digital assistants use voice commands, so users don’t have to type out questions or commands. Instead of tapping through a few screens on your phone, you can simply say ‘Call Grandma, ’ and before you know it, you’re chatting with granny about all the birds she’s seen in the yard that week.

This kind of functionality is powerful. You can make and begin music playlists for the big dinner party, schedule appointments on your calendar, or even integrate digital assistants into your smart home. Then, adjusting the thermostat or checking on the oven timer is easier than ever before. But just stop and think for a moment. How much time are you actually saving? Tapping a few buttons is already much more convenient than any previous generation. Suppose your swing-dancing, bird aficionado grandma wanted to make a playlist for a party. In that case, she’d need to have the records she wanted to play at the ready and manually change them out continuously. Sitting at a computer and pulling out your phone, and tinkering for five minutes is already so much easier. In our opinion, the marginal utility you gain from digital assistants is not enough to overcome the privacy issues.

The issue

The main problem with these devices is that they never stop listening as long as they receive power. They may not be recording until they hear the ‘activation word’ (typically some version of ‘Hey!’), but they always listen for that phrase. So, that in of itself is more than a little creepy. But, it opens you up to opportunistic hackers. If a malicious agent wanted to, they could exploit a vulnerability in the device’s software and then have full access to your personal conversations. In the case of the Facebook Portal, which comes equipped standard with a high-definition camera, a bad actor could gain access to video of your home. The truth is, this technology isn’t foolproof either. The devices can mishear the activation word and begin recording conversations you’d prefer to remain private.

Even if a hacker doesn’t actively target you for surveillance, the open secret about digital assistants is that a representative from the manufacturer’s company could be listening to you. They all are known to employ people to do randomized quality assurance checks. In fact, some have heard about the users’ illicit activities! In some jurisdictions, recordings from digital assistants can be used against you in a court of law[2]. Talk about an unwelcome snitch.

Overall, we believe that if you have any concerns about your privacy at all, don’t use a digital assistant. Do things the old-fashioned way (from 2010) and use your fingers. It may mean an extra 15 seconds multiple times throughout the day, but you get the peace of mind of knowing that your private moments aren’t compromised.

Privacy first

AXEL believes that privacy is a right and that tech companies shouldn’t infringe on it. This philosophy drives the development process of all of our software solutions, like AXEL Go. AXEL Go is a secure, private file storage and sharing platform. It gives you the power to choose precisely how private you want your files to be and never collects your personal information or mines your content. Try it now for free and receive a 14-day trial of our Premium service. All of the fantastic features are unlocked and you can see for yourself that tech products and privacy don’t have to be mutually exclusive. Take back control of your data with AXEL Go.

[1] Sneha Korad, Rachita Rake, Vineet Kumar, “Global Intelligent Virtual Assistant Market”, AlliedMarketResearch.com, 2020, www.alliedmarketresearch.com/intelligent-virtual-assistant-market

[2] Erica Vowles, Jeremy Story Carter, “Your Google Home or Fitbit could be used against you in court”, ABC.net.au, March 8, 2018, https://www.abc.net.au/news/2018-03-09/your-google-home-or-fit-bit-could-be-used-against-you-in-court/9510368

Apple and Facebook Fight Over Privacy

Apple and Facebook are currently ranked 1 and 6 respectively in the list of biggest companies by market cap[1]. These tech behemoths wield immense influence in both the business and social spheres. They also have different, seemingly opposing views on the nature of privacy in today’s society. These disparate philosophies have increased tensions between the two tech giants, and recently it’s escalated. We’ll break down the history and the sources of the standoff.

A brief history

Things weren’t always so frosty between the organizations. In fact, according to a 2012 biography, Apple CEO Steve Jobs admired Facebook CEO, Mark Zuckerberg[2]. So much so, it was a driving force in the reluctance of Apple to start a competing social network. However, after the death of Jobs in 2011, things cooled off considerably when current CEO Tim Cook took over.

Perhaps sensing the way things were going in the industry, Cook came out in 2014 with an open letter that took indirect jabs at Facebook and Google[3]. In it, he claimed Apple was not in the business of creating detailed user profiles on individuals through the use of data mining. While he did not mention his competitors directly, it was obvious who he was denouncing.

That same year, Zuckerberg fired back in an interview with TIME Magazine[4], stating

“A frustration I have is that a lot of people increasingly seem to equate an advertising business model with somehow being out of alignment with you customers. I think it’s the most ridiculous concept. What, you think because you’re paying Apple that you’re somehow in alignment with them? If you were in alignment with them, then they’d make their products a lot cheaper!”

We’d recommend reading this article. Perhaps everyone was a bit naïve at the time, but re-reading it through the lens of 2021 with an understanding of the path Facebook took, the plan Zuckerberg outlined seems much more nefarious and a good example of real-life supervillainy. What could go wrong with the CEO of the world’s most invasive social platform wanting to bring internet connection to the entirety of the world?

We digress. Throughout the next seven years, the two CEOs traded barbs on issues such as the Cambridge Analytica scandal and Apple’s monopolistic control of its App Store. In the end, the arguments usually boiled down to Tim Cook accusing Facebook of invading users’ privacies and Zuckerberg saying Apple products cost too much or that the company is an unfair gatekeeper.

We tend to fall on Cook’s side of the argument. It’s true Apple products cost significantly more than competing hardware solutions. But, as we outlined in a previous blog about free software, trading privacy for free or cheap products has serious drawbacks. Now, back to the feud.  

Tensions boil over

Fast-forward to today. In late 2020, Apple started requiring software on the App Store to come with informative “privacy labels” that clearly state the data the app collects on its users. This was great news for AXEL, but not so much for Facebook. Facebook Messenger alone has a privacy label that reads more like a novel than a brief overview[5].

The labels, combined with the most recent update, have sent Facebook reeling for solutions. The latest update goes a step farther than labels and provides users with the oft-talked-about ‘Opt-In’ scenario regarding data collection[6]. ‘Opt-In’ is a concept that requires users to agree to corporate data collection formally. This is a major step forward in the fight for digital privacy rights. It’s much better than current United States privacy regulations in states such as California and Virginia. Those pieces of legislation mandate companies provide an ‘Opt-Out’ option. While better than nothing, the fact is that consumers are busy. They don’t have the knowledge or desire to scroll through layers of confusing websites to exercise their right to opt-out.

This makes Opt-In the preferred way to offer privacy. It makes privacy the default, which will vastly increase the number of people exiting the corporate surveillance scheme. Unsurprisingly, companies like Facebook are not happy about this! Personalized advertising is the company’s lifeblood, and without user data to gather and analyze, ad revenues will likely fall.

Facebook’s response

Facebook hasn’t taken these changes lying down. Their argument centers around the effects felt by small businesses due to Apple’s changes. Facebook frames its data collection around its usefulness to small businesses. Without the ability to target people most likely to buy, these companies will feel the brunt of the impact, causing many of them to close.

Facebook started a public relations blitz, using television commercials and full-page ads in popular newspapers[7] to drive home the point. It has received some mockery for this in the mainstream media. It certainly does appear to be a rather transparent way to further its own goals while seeming to have more profound principles.

Facebook also raised another issue, and though it didn’t receive as much attention from the media, it probably has more merit. They claim that Apple’s recent privacy push isn’t out of any benevolent intentions for consumers but rather greed. Apple receives anywhere from 15-30% of App Store sales, depending on the developers’ overall revenue. By giving consumers the choice to opt into data collection, they must know that most users will decline. This could cause a shift from free apps that generate revenue based on advertising to more paid apps. In turn, Apple receives more money from downloads since more of them are paid. If true, it’s a very sneaky way for the tech manufacturer to make more money while playing the good guy.

The reality is that both Facebook and Apple are profit-driven mega-corporations looking to protect their businesses. You can’t blame either of them for this feud, although it seems obvious that Apple comes out ahead from a public utility perspective. Whatever the root cause, any initiative to substantially increase digital privacy is a good thing in our book.

AXEL’s commitment

AXEL is dedicated to fighting for digital privacy rights for everyone. The concept of data custody and forging lasting trust between consumers and technology is embedded into our corporate philosophy. We develop our products and services to live up to these lofty ideals.

If you are looking for a privacy-focused cloud storage and file-sharing platform, try AXEL Go free for 14-days. During the trial period, you receive all Premium features, including removing file-size restrictions, Secure Fetch functionality, and storage encryption. AXEL never collects personal information to sell to third parties or mines your content for advertising. We’re an alternative tech company you can trust. Secure your files. Secure your digital future with AXEL.

[1] “Largest Companies by Market Cap”, CompaniesMarketCap.com, April 30, 2021, https://companiesmarketcap.com/

[2] Emil Protalinski, “Steve Jobs admired Zuckerberg too much to compete with him”, CNET.com, July 17, 2012, https://www.cnet.com/news/steve-jobs-admired-zuckerberg-too-much-to-compete-with-him/

[3] Steve Musil, “Tim Cook explains Apple’s privacy policies in open letter”, CNET.com, Sept. 17, 2014, https://www.cnet.com/news/tim-cook-explains-apples-privacy-policies-in-open-letter/

[4] Lev Grossman, “Inside Facebook’s Plan to Wire the World”, Time.com, Dec. 15, 2014, https://time.com/facebook-world-plan/

[5] Ben Lovejoy, “App privacy labels show stark contrasts among messaging apps”, 9to5mac.com, Jan. 4, 2021, https://9to5mac.com/2021/01/04/app-privacy-labels-messaging-apps/

[6] Ian Sherr, “Apple’s privacy battle with Facebook just became all-out war”, CNET.com, April 26, 2021, https://www.cnet.com/news/apples-privacy-battle-with-facebook-just-became-all-out-war/

[7] Megan Graham, “Facebook blasts Apple in new ads over iPhone privacy change”, CNBC, Dec. 16, 2020, https://www.cnbc.com/2020/12/16/facebook-blasts-apple-in-new-ads-over-iphone-privacy-change-.html

Sharing user data with Facebook? WhatsApp with that?

Sharing user data with Facebook? WhatsApp with that?

Facebook-owned WhatsApp is receiving backlash for recent changes to its privacy policy. The topic has started an international conversation about the expectation of privacy and consumer data rights. We summarize the situation and how the fallout is pushing the discussion forward.

The application

WhatsApp is the most popular messaging application, with over 2 billion active monthly users[1]. After Facebook purchased it in February 2014, privacy advocates became rightfully concerned. At the time, WhatsApp assured users it would not allow data sharing between the two companies. However, two short years later, in 2016, WhatsApp modified its terms and conditions to enable data sharing[2]. There was a grace period for users to opt-out of the sharing, but that option has long since expired.

This concerning development was partially offset by WhatsApp’s implementation of end-to-end encryption for messages. End-to-end encryption means that only the intended recipient’s device can decrypt messages from the sender. No third party can read or mine your messages. Conceived in 2014, the feature didn’t receive full integration until 2016. Since then, privacy worries mostly dissipated even though their relationship with Facebook never changed. Until they released a privacy policy update in January 2021…

Breakdown of privacy policy changes

So, what nefarious language did WhatsApp include that triggered a backlash? If anything, it was minor updates to already-existing policies. We believe these policies should have drawn ire long before now, but better late than never. According to the policy, WhatsApp could already share the following information with Facebook[3]:

  • Phone numbers of both users and their contacts
  • Profile names and pictures
  • Metadata, including app logs, status messages (i.e., when a user last logged in), and diagnostics information.

The new policy only expands upon this specifically when communicating with businesses. Facebook now stores user chats with companies. They can also access any data within those chats[4]. Certainly not ideal, but perhaps the reaction wouldn’t be so severe had they not required users to accept the changes by February 2021 or face account deletion. The combination of scary words such as “data collection,” “sharing,” and “Facebook” was exacerbated by an equally-frightening ultimatum. It came across as a power play rather than an update. Needless to say, people were not happy.

Harsh backlash

This image has an empty alt attribute; its file name is fastCompanyHeadline-1024x374.pngThe backlash to the update was immediate. It became highly-publicized, with sensational headlines clogging up all of the internet’s many tubes.

 

Then, celebrities took to Twitter to promote privacy-based alternatives such as Signal.

 

This image has an empty alt attribute; its file name is independentHeadline-1024x460.pngThe hysteria around the policy announcement, along with the solicitation of alternatives from people such as Elon Musk, drove people to other encrypted messaging applications in droves. The open-source Signal app received the most significant boost. It is estimated that had at least 40 million new downloads within a week of the WhatsApp update.

Likewise, another private messaging client, Telegram, saw similar gains. In three days, they signed up 25 million new people for their service.

This image has an empty alt attribute; its file name is economicTimesHeadline-1024x374.pngThese substitute solutions are attractive due to their end-to-end encryption capabilities and the fact that Facebook, one of the biggest privacy offenders around, isn’t involved at all. Both companies have more transparent privacy policies and offer compelling products. Time will tell if the poached users migrate back to WhatsApp or if the trend continues.

Signal experiences difficulties

Gaining tens of millions of new users in for a bandwidth-intensive service is going to strain servers. While Telegram already had a massive user base and could withstand a short-term spike in usage, Signal had significant problems.

The Signal Foundation is a nonprofit organization that relies on private funding and donations from users. Interestingly enough, former WhatsApp co-founder, Brian Acton, is on Signal’s Board of Directors and remains one of its biggest funders[7]. Given its more “plucky underdog” status, it makes sense that the enormous increase in traffic caused issues. Within a week of its newfound popularity, the app experienced downtime and lost messages[8].

Consumers tend not to be sympathetic to poor user experiences. For the sake of all privacy apps, we hope that Signal can meet demand and deliver a great experience going forward. If people associate privacy-based alternative applications as “less than,” they’ll migrate back to the services they know.

WhatsApp combats misinformation

Undoubtedly feeling the heat, WhatsApp responded by clarifying the new policy and reassuring that they don’t share most data with Facebook[9]. To informed privacy advocates, this seems more like damage control than anything else. While this update didn’t have a significant amount of new information aside from the Businesses section, it shed light on an ongoing concern about how they share information with Facebook.

A new path forward

The WhatsApp controversy is encouraging. It shows that privacy issues can move the needle, demand mainstream media coverage, and cause tens of millions of people to switch to better solutions. In a time of corporate surveillance, government intrusion, and censorship, it’s nice to see everyday people begin to wake up. We hope this trend continues and the right to privacy becomes a  standard consideration for app developers and service providers.

AXEL believes in the users’ right to privacy and data custody. Our products embody this philosophy. Our blockchain-based, decentralized cloud storage and file-sharing platform, AXEL Go, lets you store or send files confidentially. We don’t sell your information to advertisers or mine your files for data. It offers AES 256-bit encryption to keep your documents away from any would-be spies. Try it out today and receive 2GB of free storage and enough of our AXEL Tokens to fuel thousands of typical shares. The future doesn’t have to be mass surveillance and constant data breaches. We’re providing a different path. Won’t you join us?

 

[1] J. Clement, “Number of monthly active WhatsApp users worldwide from April 2013 to March 2020”, statista, April 30, 2020, https://www.statista.com/statistics/260819/number-of-monthly-active-whatsapp-users/#:~:text=As%20of%20March%202020%2C%20WhatsApp,billion%20MAU%20in%20February%202016

[2] Natasha Lomas, “WhatsApp’s privacy U-turn on sharing data with Facebook draws more heat in Europe”, TechCrunch, Sept. 30, 2016, https://techcrunch.com/2016/09/30/whatsapps-privacy-u-turn-on-sharing-data-with-facebook-draws-more-heat-in-europe/

[3] “WhatsApp Privacy Policy”, WhatsApp.com, July 20, 2020, https://www.whatsapp.com/legal/privacy-policy?eea=0

[4] Andrew Griffin, “WHATSAPP NEW PRIVACY TERMS: WHAT DO NEW RULES REALLY MEAN FOR YOU?”, Independent, Jan. 9, 2021, https://www.independent.co.uk/life-style/gadgets-and-tech/whatsapp-new-privacy-terms-facebook-rules-explained-b1784469.html

[5] Saheli Roy Choudhury, “Indian ministry reportedly asked WhatsApp to drop privacy policy changes that sparked backlash”, CNBC, Jan. 19, 2021, https://www.cnbc.com/2021/01/20/india-has-reportedly-asked-whatsapp-to-withdraw-privacy-policy-update.html

[6] Tugce Ozsoy, Firat Kozok, “WhatsApp Dropped by Erdogan After Facebook Privacy Changes”,

[7] Andy Greenberg, “WhatsApp Co-Founder Puts $50M Into Signal To Supercharge Encrypted Messaging”, Wired, Feb. 2, 2018, https://www.wired.com/story/signal-foundation-whatsapp-brian-acton/

[8] Katie Canales, “Signal appears to be down for some users after the messaging app saw a record spike in downloads”,  Business Insider, Jan. 15, 2021, https://www.businessinsider.com/signal-app-down-users-report-messages-sending-problems-outage-2021-1

[9] “Answering your questions about WhatsApp’s Privacy Policy”, WhatsApp, Jan. 2021, https://faq.whatsapp.com/general/security-and-privacy/answering-your-questions-about-whatsapps-privacy-policy

Projects We Love: PrivacyWall

This is part of our series highlighting startups who share our mission of trying to bring data privacy back to users.

You’ve had a rough week, maybe it’s a relationship or health problem, but either way, you’re feeling down. Fortunately, your family is there for you, and reach out to console you through a few private messages on social media.

Mom: “I know it’s expensive, I’m sorry your health care doesn’t cover it, we’ll do what we can to help you pay.”

Dad: “Don’t worry sport, she’s just going through a phase, I’m sure you guys will work through it.”

Friend: “Hey man, let’s meet up for a drink this weekend, cheer up!”

After reading your messages, you lay down in bed to rest and start scrolling through social media to pass the time until you fall asleep, and you’re astounded by what you find.

Ads.

But not just the usual ads for food, or some new tech gadget.

“Lower your healthcare costs now! Save 20% off market rate plans!”

“Relationship trouble? Local family counseling is available!”

“Cheapest beer in town, and half-price shots on Fridays!”

Maybe it’s just coincidence, or maybe every single thing you say or do online is being tracked and sold to advertisers… That “free” social media website has to make money somehow.

And that’s where PrivacyWall comes in- a startup that is returning data privacy and security to users. By blocking unwanted data collection by everyone from Facebook to Google, PrivacyWall puts you back in the driver’s seat.

Why PrivacyWall?

Every website you visit, every search you type in, every message you send and photo you post, it’s all tracked, recorded, and monitored. PrivacyWall is the “off” switch we’ve been waiting for.

By blocking over 3,000+ trackers from many of the largest tech companies in the world you can once again browse the internet without fear of being tracked like the target of a CIA investigation. We expect privacy in our homes, and we should get the same treatment on the internet.

PrivacyWall even blocks Facebook Connect from building a shadow profile of your online activity when you are not on Facebook. If you didn’t know, that convenient “log-in with Facebook” turns that account you just signed up for into another data collection point for Facebook to build a profile on you.

If you didn’t know that, you aren’t alone. And that’s exactly why PrivacyWall blocks threats you don’t even know about yet. Because you shouldn’t have to become a security expert and worry about your private information being leaked just because you used Facebook to sign-up for a food delivery app, or a dating site, or anything.

You deserve privacy, and PrivacyWall is a step towards a more private world.