From what I can understand, the data is encrypted with the private key, so even if the copy of the data is hacked, is unreadable. Only those with the private key, or the access through this proposed system, which provides temporary/permanent access, can read that data. Of course, once decrypted, the data could be exposed. But since the data is decentralized, there is no honeypot to go after. Way harder to accumulate information on just one person.