Privacy and functionality can seem inherently at odds with one another, yet with thoughtful design both values can be upheld. One approach is to refocus how data is collected, stored, and used according to several key principles:

Minimize collection. Only collect data necessary for stated system functions, avoiding blanket data grabs. An online store need only collect payment details, not a life history. Systems could also give users meaningful control over what data is collected about them.

Decentralize storage. Rather than aggregating all user data in a single large database, a better model is federated storage where data about each individual remains localized to their own device or a close third party. Central databases become hacking targets whereas dispersed data has no “pot of gold.”

Use anonymization. Where aggregate data trends may be useful, like improving a fashion site’s recommendations, personal details should be anonymized and details like names, addresses and other directly identifying information removed before any sharing or analysis. cryptographic techniques like differential privacy can help achieve this.

Limit third party sharing. By default, personal data collected by one entity for a stated purpose should not be shared with or sold to third parties. Explicit opt-in consent from users would be required for any sharing, sale or additional uses beyond the purpose for which data was originally collected.

Embrace purpose limitation. Collected data should only be used for the purposes disclosed to and consented to by the user. “Mission creep” where data is used for unexpected secondary uses undermines trust and privacy. Systems could implement technical checks to enforce allowed uses.

Give control to users. Individuals should have access to all data collected about them, the ability to correct inaccuracies, request data deletion, and easily withdraw consent for any third party data uses. Technical barriers should not obstruct these basic privacy rights and controls.

Use strong encryption. Where transmission or storage of sensitive personal data is necessary, strong whole-system encryption protocols ensure that even if data is intercepted it remains protected. Encryption keys should remain localized under user control as much as possible.

Apply strict access controls. Within systems, access to personal user data should be tightly controlled on a need-to-know basis alone. Audit logs can help monitor for any improper access attempts and hold systems accountable. Structured data policies and personnel training reinforce privacy-respecting culture.

Employ accountability. Independent third party audits assess privacy/security practices. Incidents like breaches are disclosed promptly and remediation efforts announced. Regulators oversee compliance while certifications like Privacy by Design reinforce conformance. Consumers can opt to take disputes to binding arbitration.

Incorporate user feedback. Privacy and functionality evolve alongside user needs and expectations. Ongoing user research, transparency into data practices and response to concerns help keep systems iteratively improving with input from those impacted most.

By applying these privacy-preserving design principles – minimizing data collection, decentralizing storage, anonymizing insights, limiting sharing, enforcing purpose limitation, putting users in control, employing strong encryption and access controls, maintaining accountability and incorporating ongoing feedback – systems can balance functionality with individual privacy concerns. No system will ever satisfy all parties, yet an earnest commitment to these best practices establishes trust and shows priority placed on data respect. With sustained effort, privacy need not come at a cost to utility if thoughtful solutions center human needs over corporate interests alone. Doing right by users now helps ensure viability over the long run.

An alternative model focusing on minimizing data grabs, decentralizing storage, anonymizing insights, restricting sharing and secondary uses, giving users control and visibility along with strict security can achieve much-needed balance. Ongoing review and improving based on real-world experiences further strengthens privacy and widens the circle of stakeholders with a say. Outcomes matter more than broad claims. By making demonstrable progress on tangible privacy design, systems earn willingness from users to participate and thrive.