Companies increasingly rely on personal data to offer personalized experiences, with 80% of customers favoring businesses that do so. Traditionally, companies store user data on their own infrastructures, leaving users with little control over their information. Privacy regulations like GDPR have made data handling a concern, with major fines for breaches.

Decentralized data solutions like the Fediverse and Solid ecosystem offer alternatives. These systems decentralize storage, reducing reliance on corporate silos and potentially easing GDPR compliance. Semantic Web technologies ensure interoperability across decentralized systems, enabling personalized services without centralized data hoarding.

Challenges remain for decentralized adoption, including deriving insights from distributed data, scalable and efficient querying, and improving usability. Solutions must balance privacy with functionality, ensuring seamless, user-friendly interaction with decentralized data ecosystems.