Anonymous by default: The future of privacy protection

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  Quantumrun Foresight
• November 25, 2021

The shift towards anonymous-by-default practices has led to the development of data privacy standards and increased public demand for greater privacy protection. Embracing anonymous-by-default principles can benefit individuals by enhancing their privacy and security, while companies can gain a competitive advantage by prioritizing privacy and attracting privacy-conscious customers. Meanwhile, governments need to strike a balance between security and individual freedoms.

Anonymous-by-default context 

Conventional practices across the broad diversity of technology industries have been to use third-party cookies and other tracking solutions to collect consumer data, while also giving consumers the (often obscure) option to “opt out” if they wish. Unfortunately, this opt-in by default standard led to developers extensively tracking consumer on and offline activity for decades. 

Many consumers, privacy advocates, and lawmakers believe this paradigm of pervasive data collection to be an invasion of consumer privacy. This emerging public consensus has gradually led to the development of privacy standards such as the General Data Protection Regulation (GDPR). The GDPR is a European Union (EU) standard that sets guidelines to protect user data and privacy online. 

This shift toward greater privacy regulation has not been entirely resisted by the private sector. Many tech companies are also concerned about their devices being misused for privacy invasions. For example, a Canadian business called Cognitive Systems was reported using its algorithm and a user’s WiFi connections to pinpoint said users’ exact locations and activity. 

Similarly, most internet users aren’t tech-savvy, especially those in the developing world who will gain access to the internet for the first time during the 2020s. Such online populations may often fall victim to data breaches without their consent or knowledge. This growing threat is why experts believe that simply giving consumers the option of removing activity tracking isn’t enough. Instead, experts advocate for the anonymous-by-default approach as the future of the IoT and digital services. 

Some companies have already made headway in implementing the anonymous-by-default policy. For example, Density created a completely anonymous people-counting sensor that commercial buildings use to track customer influx. Previously, these devices would anonymize consumer data after collecting it. 

Disruptive impact 

Anonymous-by-default devices and platforms offer a significant boost to privacy and personal security. With anonymity as the default setting, individuals can communicate, browse, and transact online without the fear of their personal information being collected, stored, and potentially misused. This heightened sense of privacy empowers individuals to express themselves freely, engage in sensitive discussions, and maintain control over their digital identities. Furthermore, it reduces the risk of identity theft, surveillance, and targeted advertising.

For companies, embracing anonymous-by-default principles can be a strategic move that builds trust and enhances their competitive advantage. By prioritizing privacy and offering anonymous services, companies can attract customers who value their personal information and are concerned about privacy breaches. This shift requires significant investment in research and development to create technologies that preserve anonymity while maintaining usability and functionality. However, the success of these endeavors can position companies as leaders in privacy-focused industries, enabling them to tap into a growing market demand for anonymous products and services.

While governments may initially perceive anonymous devices as a threat to their surveillance capabilities, embracing this shift can foster a more balanced and democratic society. Governments need to recognize the value of privacy as a fundamental right and work towards regulating data collection, storage, and access to strike a balance between security concerns and individual freedoms. Furthermore, they can encourage the development of anonymous-by-default technologies by providing incentives to companies and collaborating with tech experts to ensure that public safety and privacy concerns are adequately addressed.

Implications of anonymous-by-default

Wider implications of anonymous-by-default may include:

• A booming alternative market for businesses that differentiate themselves by prioritizing client or consumer data privacy by using anonymous-by-default in their product or service offerings. 


• The general public having to accept products and services that are less customized to their needs, as well as increasingly paying for online services that they previously accessed for free.


• Decreased surveillance on populations by limiting access to user data.


• Reduced economic costs from cybersecurity attacks.


• A more equitable digital advertising landscape, where businesses rely on innovative and alternative marketing strategies that prioritize user consent and offer greater transparency.


• Marginalized communities being empowered, allowing them to participate in political discourse without fear of persecution or discrimination, leading to increased civic engagement.


• Innovation in privacy-enhancing technologies, driving advancements in encryption, decentralized networks, and secure communication protocols.


• A reduced need for energy-intensive data centers and complex tracking mechanisms, leading to a potential decrease in energy consumption and carbon footprint associated with digital technologies.

Questions to consider

• Do you think protecting consumer privacy is a priority for tech developers? 


• Do you believe businesses using consumer data to create targeted ads have dire consequences for people’s privacy?