Decentralized Governance for Enhancing Data Privacy and Stakeholder Confidence in Industrial Platforms

Abstract

The trustworthiness of stakeholders can experience a radical shift and improvement in the sphere of data privacy once the systems of decentralized governance are implemented and the industrial platforms are introduced. With the continued reliance on digital platforms to process and transfer critical data, the issues of data security, privacy breaches, and centralized control have become significantly more concerning/intricately-connected. This study looks at how decentralized governance can help address these problems on industrial platforms used to facilitate real-time decision-making via data exchange. A mixed-methodological design employed the use of both qualitative and quantitative analyses, using multiple case studies and a survey of 150 stakeholders, including platform end-users, platform developers, and industry specialists. Insights gained through the qualitative case study data suggest that the use of decentralized governance will allow for greater transparency, data security, and trust through the use of blockchain technology, ensuring that no one entity has full-control of data collected and/or processed. According to results of quantitative surveys, 78% of respondents view decentralized governance as safer than traditional centralized governance and 85% believe that blockchain technology advances their level of confidence to maintain the privacy of sensitive data. Furthermore, 62% of surveyed participants indicated it felt more vested in the governance process, which ultimately resulted in their increased trust in the system overall. The findings also suggest that technological complexity (54%) and regulatory uncertainty (45%) remain key barriers towards broader adaptation of decentralized governance structures across a variety of industries. As such, the findings highlight the need for the development of decentralized governance structures that give stakeholders an empowered role; that improve the privacy of data collected and/or processed; and that empower stakeholders in their decision-making/sustained use of the industrial platform. This article is part of increasing literature regarding decentralized systems; providing value for executive leaders who want to improve how they manage their data with respect to privacy, and build a more equitable & trustworthy digital ecosystem.