They mention three main problems:
- Your provider could fold, taking your data with it.
- Depending on the terms of its yada yada, your provider could shut down your account for any number of reasons beyond your control. For example, a random person could tell them, without proof, that they think you're engaged in committing a crime.
- Again depending on the terms of the yada yada, the provider might share your data with anyone and everyone.
The holy grail here is a service whereby your data is:
- Safe: It won't go away, barring disasters in multiple, geographically separated sites (in which case there are probably bigger fish to fry). You may lose access to it, whether because you don't have connectivity, or because your provider folded and the data is temporarily in escrow, or because you really are accused of a crime, or whatever.
- Secure: Only you can get at it. If you provider leaks your data, it's liable up to some fairly substantial point. If you lose your keys, you can have them replaced conveniently.
- Yours: You have the rights to whatever you store (provided you created it or otherwise had the rights to it in the first place) unless and until you explicitly sign them away. As I understand it, this is one of the key tenets behind personal datastores.
On the other hand, there is probably room for a few well-placed regulations to help things along here. In particular:
- That data held by a provider that goes out of business should go into escrow and made available to former customers for a reasonable period.
- That data remains private unless specifically made public.
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