A major data breach has exposed the sensitive personal information of over 700,000 individuals through a government health system, with the exposure lasting years before detection. The incident highlights the critical vulnerabilities in centralized data storage systems and raises serious concerns about how traditional institutions safeguard citizen information. When massive amounts of personal data remain exposed for extended periods, it demonstrates why decentralized identity solutions and blockchain-based privacy frameworks are gaining traction in the crypto community. Such breaches underscore the limitations of centralized databases and fuel discussions around Web3 alternatives that could give users direct control over their own data. As privacy becomes increasingly precious in the digital age, many believe that cryptographic solutions and decentralized architectures might offer more resilient protection mechanisms compared to conventional centralized systems.