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Reading through your write up my boss, I feel what you've penned down goes fine.
It's often said safety first and for the sake of Web3 security, it's has to to modified in a more complicated way. For me, I feel in Web2, privacy is never completely private, and that's why one can actually have access to their forgotten private data. But in Web3, I feel whatever is termed private is absolutely private and by losing such data, everything it controls is lost as well.
That's what I feel.
Thanks for sharing boss, enjoy your weekend.