Jul 13, 2023

Web3 Ethics: Navigating Privacy And Data Ownership

Read to know more about brand-building ethical challenges in the Web3 ecosystem.

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Web3 Ethics: Navigating Privacy And Data Ownership

Web3 is the new frontier of the internet. It has the potential to transform businesses' ability to build brands and engage with customers.

Web3 is built on blockchain technology, which is decentralized and distributed. The system enables secure and transparent transactions without intermediaries. Value creation and innovation offer immense possibilities.

As a digital marketer, you should know Web3 ethics. These will be different from the current standards you follow.

Web3 ethics revolve around privacy and data ownership. In this evolving landscape, some practices need to change.

Privacy and Data Ownership in the Web3 Space

At present, you collect user data for targeted messages and campaigns. In Web3, users will have greater control over their data.

These users can decide who accesses their data. They choose which brands to engage with and to what extent. To launch successful Web3 projects, you need to be transparent and earn loyalty.

Trust is an essential brand differentiator, even at present. In Web3 advertising, this factor will be of much greater importance.

Users need to be sure that your Web3 project is not associated with Ponzi schemes or other dubious business practices. You should be upfront and straightforward at all times.

Businesses that emphasize user privacy build better reputations. This approach will lead to greater brand loyalty. Consumer data must be used responsibly.

Ethical Challenges and Dilemmas for Marketers

Web3 ethics will play a key role in a world of transparent, decentralized and peer-to-peer ecosystems. As a digital marketer, you need fairness and principle.

We have already touched on some data privacy concerns. Here is a more detailed look at the issues.

  • You need to put a system in place that provides clear information about what data is collected and why.
  • You should ensure you are not breaching user privacy. Safeguarding user data from misuse and unauthorized access.
  • Avoid misleading or false claims. These damage your reputation and reduce user trust.
  • User data should be used only in ways users consent to.
  • Web3 is built on decentralization. You must ensure that centralized intermediaries do not get in the way. This is fundamental to blockchain and privacy.

In the current Web2 ecosystem, the task is to seamlessly transition to the above practices. A robust user-first policy is the best way to do this.

Best Practices for Responsible Web3 Advertising

Marketers should start thinking about effective ways to interact with Web3 audiences. Here are some best practices for doing this.

  • You should provide accurate information about cookies and other tracking technologies.
  • Seek user consent before collecting any data.
  • Take proactive steps to prevent user data from falling into the middlemen's hands.
  • Stay away from misleading or inaccurate claims.
  • Risks of security breaches should be modeled and analyzed before going live with the project.
  • You should conduct regular security and safety audits. Third parties with experience can carry out these audits.
  • Make sure that advertising and other activity complies with current Web3 ethics standards.

Web3 regulations are in progress. They are being formulated to keep pace with changes.

The European Union is creating cryptocurrency regulations and rules for blockchain technology. The United States has tasked the Securities and Exchange Commission with increasing enforcement against companies suspected of engaging in fraud.  

As Jamilia Grier, the Founder & CEO of ByteBao has said, entrepreneurs and start-ups have an obligation to society and consumers to follow laws and regulations.

Two Case Studies


Salesforce, a leading CRM platform, entered the Web3 space by enabling companies to launch NFTs for brand loyalty and consumer engagement.

They take an ethical approach to privacy and data ownership by:

  • Deploying audited smart contracts on leading blockchains.
  • Collaborating with partners to analyze, flag, and assign risk scores to crypto wallets.
  • Providing a secure, authentic NFT checkout experience.
  • Employing best-in-class consent and privacy practices.


Roblox is a virtual gaming universe that allows users to play games, create new ones, and chat with others online. Over 50 million people access it every day.

To ensure ethical marketing and community-building, Roblox has strict community standards. Some of their principles are:

  • A zero-tolerance policy for endangering minors.
  • A restriction on content or behavior that supports or promotes extremist activities.
  • A ban on threats, bullying or harassment.
  • Prohibiting deceptive and misleading schemes.
  • Restrictions on sharing personal user information.

Also read, What Is Web3 Marketing And How Is It Different From Traditional Marketing?

To find out more about Web3 and ethical marketing, register with Blaze today!


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