The bombshell revelation of a massive data breach, compromising 16 billion login credentials, has plunged internet users into a fresh wave of anxiety, sparking fears that cybercriminals are already pilfering personal accounts. Though security experts are urging immediate password changes, a critical counterargument posits that this reactive measure offers no true safeguard against future, identical incursions.

Instead of the conventional focus on merely changing passwords, experts interviewed by Bitcoin.com News contend that the recent breaches necessitate a radical paradigm shift. They argue it’s time to abandon reliance on centralized databases storing sensitive user information and embrace a privacy-first mindset that fundamentally leverages decentralization.

Shahaf Bar-Geffen, CEO of COTI, also argued that while societies have historically placed trust in “authorities” and institutions, this mindset is ill-suited to serve people well in the virtual spaces that increasingly mediate our lives.

“The traditional, trust-based world is not suited to the online world, and yet it’s still the dominant mode of operation. Business online often leads to traditional endpoints that leave a trail of exposed credentials across platforms,” Bar-Geffen explained.

This viewpoint is shared by Nanak Nihal Khalsa, co-founder of Holonym, who argues that companies are only sticking with this model because it’s cheap. He stated: “The problem is companies are still using these instead of decentralized alternatives because they are cheap and convenient. But, there are safer and more effective ways to authenticate users and/or store their sensitive data.”

One such way, according to Bar-Geffen, is the use of decentralized and encrypted data that can be accessed without needing to be deciphered, through innovations like Zero-Knowledge Proofs (ZKPs) and Homomorphic Encryption.

As reported by Bitcoin.com News, researchers at Cybernews who uncovered the breach said it was not just a leak but “a blueprint for mass exploitation.” Other experts warn that cybercriminals can leverage the leaked datasets to intensify identity theft, phishing and system intrusions.

Still, for others, the massive breach calls into question the relevance of passwords in this age where cybercriminals are ever becoming more sophisticated. While talk of eliminating passwords altogether has subsisted for a decade, Khalsa argues that no clear alternative has emerged to justify dispensing with the password paradigm. Concerning passkeys, which some tout as viable alternatives to passwords, the Holonym co-founder said:

“There’s a common rumor that passkeys will replace passwords. But passkeys are typically synced in our cloud accounts that ultimately rely on passwords. Cryptographic keys also can be used but are difficult to manage. Their recovery techniques tend to rely on accounts that need passwords.”

Meanwhile, Bar-Geffen believes tools such as decentralized identity, ZKPs and crypto wallets already act as “secure, user-controlled access and permission methods.” However, the challenge, Bar-Geffen argues, is getting companies, governments and users to adopt the privacy-first approach. He also highlights why adoption of the privacy-first approach in the artificial intelligence (AI) era is crucial.

“There’s also the incoming issue of AI. It’s important to transition to a new model (self-sovereign and permissioned privacy) because AI automation is proliferating, which will exacerbate the scale of data breaches, and we could even see the internet rendered unusable without a new model for privacy,” the COTI executive said.

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