The EU’s two-tier encryption vision is digital feudalism


Opinion by: Bill Laboon, Vice President of Ecosystem at the Web3 Foundation
Sam Altman, CEO of OpenAi, recently appeared for a while of humanity in a world of tech that often promises too much, too fast. He urged users not to share anything on Chatgpt that they don’t want someone to see. The Department of Homeland Security In the United States it has begun to be noticed.
His caution taps into a deeper truth that underlies our entire digital world. In a realm where we can no longer be sure if we are deal with someone, It is clear that software is often the agent that communicates, not people. The growing uncertainty is more of a technical challenge. It strikes at the very foundation of mutual trust in society.
This should cause us to reflect not only on AI, but on something more basic, older, quieter and more critical in the digital realm: encryption.
In a world increasingly shaped by algorithms and autonomous systems, trust is more important than ever.
Encryption is our foundation
Encryption is not just a technical layer; It is the foundation of our digital lives. It protects everything from private conversation in Global Financial Systemsaffirms identity and enables trust to scale across borders and institutions.
Crucially, it is not something that can be recreated through regulation or replaced by policy. When trust breaks down, when institutions fail or power is abused, encryption is what remains. It is the safety net that ensures our most private information remains protected, even in the absence of trust.
A cryptographic system is not like a house with doors and windows. This is a mathematical contract; precise, strict and meant to be unbreakable. Here, a “backdoor” is not just a secret entry but a flaw embedded in the logic of the contract, and a flaw is necessary to break the entire agreement. Any weakness Introduced for a purpose can be an opening for everything, from cybercriminals to authority regimes. Built entirely on trust through strong, unbreakable code, the entire structure begins to crumble the moment that trust is broken. And now, that trust is under threat.
A Blueprint for Digital Feudalism
The European Commission’s Protectionu initiative proposes a mechanism that forces service providers to scan private communications directly on users’ devices before encryption is applied. This effectively turns personal devices into surveillance tools and destroys the integrity of end-to-end encryption. While state actors would never allow such a weakness in their own secure systems, this mandate creates a separate, weaker standard of security for the public.
On the surface, it sounds like a reasonable compromise: stronger encryption for governments, with so-called “lawful access” to citizens’ data. However, what this suggests is a hardcoded imbalance, one where the state is encrypted, and the public is decrypted.
Related: EU Eyes Crypto Oversight Under ESMA To End Fragmented Supervision
This is not a security policy. It’s a blueprint for digital feudalism – a future where privacy becomes a privilege reserved for the powerful, not a right guaranteed to all. Two-tier encryption shifts the balance of trust away from democratic accountability and cements a control structure that no free society should accept. Make no mistake: This debate is not about salvation. It’s about control.
We should not live in a world where the powerful can only get private.
In an age of ubiquitous AI, state-sponsored hacking and mass digital surveillance, weakening encryption is not just overlooked but a systemic carelessness. For those of us in the decentralized world, this is not an abstract debate; This is a matter of practical concern. Strong, unbreakable encryption is more than a technical feature; It is the foundation on which everything rests.
Truth through verification
This is why Web3’s mission must remain rooted in its core promise: truth. Not truth by authority, but truth by verification. This principle of a self-enforcing contract is why truly decentralized systems are built without a central master or institution that holds the keys. Introducing a backdoor is a contradiction; This again establishes a central point of failure, which violates the very premise of an untrustworthy system. Security is a binary state: it is either there for everyone, or it is guaranteed for no one.
Fortunately, these rules are not just theoretical. The cryptographic primitives emerging from this space—zero-knowledge proofs that can confirm facts without exposing data, and proof-of-identity systems that resist civilian attacks without compromising privacy—offer a real, working alternative, showing that we don’t have to choose between security and freedom.
The irony is stark: The same field now under threat holds the tools we need to build a safer, more open digital future. One based not on surveillance or gatekeeping, but on unauthorized change, cryptographic trust and individual dignity.
If we want a digital world that is secure, inclusive and resilient, then encryption must remain a robust and universal standard for all.
Not because we have something to hide, but because we all have something to protect.
Opinion by: Bill Laboon, Vice President of Ecosystem at the Web3 Foundation.
This article is for general informational purposes and is not intended to be and should not be construed as legal or investment advice. The views, thoughts, and opinions expressed herein are those of the author alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.



