Web2 Versus Web3 Information Privacy: An Information Systems Discipline Perspective

Abstract

This chapter has two purposes. First, we describe how information system (IS) scholars approach privacy research and summarize major findings. IS scholars are concerned with information privacy and have discovered that individuals have serious information privacy concerns. These concerns, however, do not prevent individuals from disclosing personal identifiable information (PII) with centralized platform providers, a phenomenon called the privacy paradox. We highlight four common explanations for the privacy paradox: privacy calculus, privacy fatigue, trust, and lack of choice. Most IS research investigated Web2 applications. Web2 is the foundation for today’s global economy. With Web2, users rely on centralized platforms for online searching, shopping, banking, data storage, social media, and other services. Second, we introduce readers to the new paradigm of Web3. Privacy protection has been the paramount logic behind the grand design of Web3 applications. Web3 is the era of the Internet that is based on decentralized infrastructures and applications, like Bitcoin and Ethereum. Web3 applications enhance information privacy compared to Web2 because individuals can access services without disclosing PII to a central authority. The privacy objective is achieved technically through a combination of digital wallets, cryptography, and distributed ledgers (a.k.a blockchain). While Web3 is still in its early days, education is an important driver of adoption.