Role of Blockchain in Consumer Data Privacy & Transparency

Abstract

The exponential growth of digital platforms, artificial intelligence, and data-driven business models has intensified concerns about consumer data privacy, security, and transparency. Traditional centralized data management systems have repeatedly failed to protect user information from unauthorized access, data breaches, surveillance capitalism, and opaque data monetization practices. Blockchain technology, characterized by decentralization, immutability, cryptographic security, and distributed consensus, has emerged as a promising solution to restore trust and accountability in digital data ecosystems. This study investigates the role of blockchain technology in enhancing consumer data privacy and transparency across digital platforms. By integrating privacy calculus theory, trust theory, and information transparency frameworks, this research develops a comprehensive conceptual model explaining how blockchain-enabled mechanisms influence consumer trust, perceived control, data security perceptions, and transparency. Using secondary conceptual modeling and empirical validation through survey evidence from 540 digital consumers, the findings demonstrate that decentralization, smart contracts, user-controlled identity, and immutable audit trails significantly strengthen data privacy assurance and transparency perception. The study contributes to information systems and digital governance literature by establishing blockchain as a foundational infrastructure for privacy-centric and transparent digital commerce. Practical implications are provided for marketers, platform designers, fintech firms, policymakers, and regulators.