Proposal of bridging valuable web2 data to web3

Which scenarios are worth doing? Which are not?

(1) If the value of data is not higher than the cost of storage and confidential computation onchain, it is not a good or appropriate scenario.

As most of the transactions that web3 users have in social and game dapp are clearly lower than the on-chain cost, it limits Litentry's potential for integration with web3 social and game dapps.

(2) Only the scenario having sensitive and valuable user data are worth doing.

I am constantly thinking about which data is worth protecting for users and meanwhile valuable for data buyers.

For example, web2 user data such as credit card consumption records, Taobao / Pinduoduo / Amazon purchase records are most valuable, and of course all these data are manipulated and monetized by web2 companies.

In a web3 scenario, a web3 social dapp is saying that if a user earns a certain amount of achievements in Game A, they can start playing at level 30 in Game B. It makes sense, but they are not very valuable.

(3) What if a dapp collects a user's credit card consumption records, stores them on-chain in AES encryption format, and uses Litentry's ability to generate Verifiable Credentials for potential B-end buyers?

Currently I don't have a clear answer about what user data are most valuable and worth doing. Any comments or suggestions are welcome.

What is true data sovereignty?

• Level 1: In web2 users do not own their data, companies own and monetizes their data.
• Level 2: In the present, web3 users' data becomes a public good and is not owned by themselves. For example, on-chain analytics tools, such as Nansen, aggregate and analyze on-chain data without returning the value to the owners. Some Whales trading data are mined and sold, but the whales don’t get paid.
• Level 3: True data sovereignty. It can be achieved when web3 users have control over their data through totally data ownership, onchain / offchain data encryption, and data sharing permissions. This ensures privacy and monetization to users.

Currently a lot of web3 projects are playing on level2, but Litentry with its sidechain has the ability to achieve level 3.

This proposal includes the following potential scenarios:

(1) Integration with blockchain storage services

To enhance Litentry sidechain's data storage capabilities. User's web2 data is encrypted (such as by AES) and stored in public blockchain storage. Litentry generates Verifiable Credentials under user’s permission, while not exposing any privacy information. One use case is web2 user data vault.

(2) Embrace the Ethereum ecosystem

To accelerate interoperability with the EVM compatible blockchains. Litentry should prioritize interoperability with AA wallets to get more web2 users involved and explore unique B-side confidential computation use cases.

(3) Connect with more off-chain scenarios

Such as off-chain KYC service, where the sidechain fetches users' KYC results from, uploads them in AES format to public cloud storages, only user and sidechain share the AES password, and sidechain generates Verifiable Credentials(even in SBT format) for DeFi projects.