Embedding human rights into crypto isn’t optional, it’s foundational

Opinion by: Shady El Damaty, co-founder of Human.Tech

Beyond the hype of accelerationist and technophile circles, a quiet crisis of confidence is taking hold in emerging technologies.

Crypto and decentralized identity solutions still carry enormous potential to empower individuals and distribute power — but many builders and users are sounding the alarm. Their disillusionment stems from real concerns: surveillance overreach, centralization disguised as innovation and tools that serve power, not people.

This conversation is no longer theoretical. From deepfake scams and AI impersonation to state-backed biometric ID proposals and the EU AI Act, digital rights are being defined in real time, often without public consent.

In this climate, the question isn’t whether to embed human rights into crypto systems, but how soon we must.

The root of the problem isn’t technology itself, but the values embedded in its design. Crypto’s future legitimacy depends on embedding human rights into its architecture.

Principles like self-custody, universal personhood and privacy-by-default shouldn’t be treated as optional features — they must be prerequisites for any system that claims to advance human freedom.

Redefining self-custody as human-centric

If we fail to embed ethical principles into protocols now, we risk recreating the same power dynamics Web3 was meant to disrupt.

Self-custody has long been a cornerstone of crypto. The failures of centralized exchanges — like those that led to the collapse of FTX — and the usability challenges of many existing custody tools have revealed a critical gap: Most self-custody solutions aren’t built for people; they’re built for power users.

To be viable at scale, the next generation of custody must preserve user control without sacrificing accessibility. Lost keys, obscure interfaces and fragile backups are unacceptable if the goal is true user empowerment. The future of custody will depend on a design that balances safety, simplicity and sovereignty.

Universal personhood as a digital necessity

As bots grow more convincing and AI-generated interactions flood the web, proving you’re human is becoming more complex and essential. We need methods to verify humanity without compromising privacy or individual autonomy.

State-run biometric IDs and corporate credentialing systems pose serious risks. Instead, decentralized and censorship-resistant systems of personhood must enable individuals to prove their humanity without surrendering it. This is the foundation for trust, integrity and inclusion in digital space.

Privacy must be the default, not the patch

Surveillance, data breaches and behavioral tracking are the legacy of Web2. Web3 has the opportunity, and the obligation, to break that pattern. Privacy is often treated as an add-on rather than a built-in right.

Related: Crypto’s true revolution is about humanity, not technology

Privacy-by-default means designing systems that minimize data collection, encrypt by design and preserve autonomy in storing and using data. Visibility should never be the default. Every system should begin from the premise that user protection is a feature, not a toggle.

Address risk without abandoning responsibility

Some critics argue that embedding values into systems can backfire and that ethical frameworks might be co-opted or politicized. That’s a genuine concern. It’s still not an excuse for inaction. Transparent system design, open governance and pluralistic alignment mechanisms can mitigate this risk and help ensure protocols remain accountable to users, not just founders or investors.

Web3 offers tools that, if built responsibly, can decentralize control, empower communities and resist misuse. This potential will only be realized if builders consciously embed rights into the protocol layer rather than try to retrofit ethics after launch.

We are at a turning point. Human rights can no longer be treated as external guardrails. They must become internal operating principles for digital infrastructure. That’s not a philosophical luxury; it’s imperative for design.

The window is open, but narrowing. If we want a digital future that serves humanity, the time to embed our values into code is now.

Opinion by: Shady El Damaty, co-founder of Human.Tech.

This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.