Over the past two years, Tiktok has found themselves at the center of the most important digital sovereignty battles of our time. What was looking like a political dispute between the US government and a foreign-owned Chinese social media company on the surface, is now a debate about who controls the algorithms, safeguards data and how cryptographic tools might help bring trust in a world where social media/digital power equals political power.
In April 2024, the US government passed the Protecting Americans from Foreign Adversary Controlled Application Act, a law mandating foreign owned applications like Tiktok to either divest their US operations or face a national wide ban. ByteDance, the parent company of Tiktok, challenged the law but in January 2025, the US Supreme Court upheld it as constitutional.
The decision left ByteDance with two choices, sell Tiktok US or risk being shut down entirely. As of late September 2025, a deal is taking shape that would place Tiktok US operations under majority ownership by US investor, with Oracle providing oversight of US user data.
THE ALGORITHM: TIKTOK’S “SECRET SAUCE”
At the center of all this controversy is Tiktok’s recommendation algorithm. It’s the engine that decides what people/ users see and it is also ByteDance most valuable intellectual property. For US law makers, the algorithm itself represents both a national security concern and a potential propaganda tool.
The unanswered question now is how much control the US will actually gain. Will it’s algorithm be fully transferred and operated domestically? Or will American entities just license it, leaving ByteDance with a little influence? Some proposals suggest creating a US only version, while others point to licensing agreements that could still leave update pipelines very vulnerable to foreign access.
CRYPTOGRAPHY AND DATA SECURITY CHALLENGES
Beneath the headlines, the negotiations raise deep technical issues that cryptography and computer/ data security are uniquely suited to address
- Data Localization: Ensuring US user data stays physically within the US borders. Cryptographic access controls could help enforce who will and will not be able to read sensitive data.
- Access Control: Preventing foreign engineers and technicians from gaining back door access to servers or training pipelines. Strong authentication, encryption and hardware security can reduce the risk.
- Algorithm Integrity: Guaranteeing that it’s recommendation system cannot be secretly manipulated. Here, cryptographic audit logs, signed updates could provide proof that no unauthorized changes are made.
- Transparency Without Trade-Offs: Law makers want oversight, but ByteDance wants to protect its intellectual property. Advance cryptographic techniques could help them verify compliance without exposing the internal workings of the algorithm.
RISKS AND UNANSWERED QUESTIONS
Even with a U.S. taking over the platform, major questions remain:
- Will ByteDance truly give up meaningful control, or will licensing deals keep hidden dependencies alive?
- Could covert channels still allow sensitive data or algorithmic updates to flow overseas?
- How can regulators verify independence when trade secrets limit what they are allowed to see?
- And, perhaps most important of them all, what happens if China blocks ByteDance from exporting its algorithm under its own tech-control laws?
THE BIGGER PICTURE
The TikTok case is not just about one application. It sets a precedent for how governments may handle foreign owned platforms in the future. It also highlights the tension between national security, free speech, and intellectual property in a globalized digital economy.
Cryptography may become the critical bridge between these competing interests. By making systems verifiable without being fully transparent, it offers a way to “trust but verify” in an era where trust is scarce.
CONCLUSION
TikTok’s future in the U.S. is still being negotiated, but the lessons extend far beyond a single application. Control over algorithms and data is quickly becoming as important as control over natural resources or military assets. As governments wrestle with how to govern digital platforms, cryptographic tools will play a central role in ensuring that these systems are both secure and accountable.
The outcome of the TikTok saga may well define how nations approach the next generation of global digital platforms.
REFERENCES
- Protecting Americans from Foreign Adversary Controlled Applications Act (2024)
- Wikipedia summary of the law: Protecting Americans from Foreign Adversary Controlled Applications Act
- Supreme Court Case (2025)
- Wikipedia summary of TikTok, Inc. v. Garland: TikTok, Inc. v. Garland
- Recent News on the TikTok Deal (September 2025)
- AP News — Emerging TikTok deal with China ensures US control of board and crucial algorithm, White House says: AP News
- Washington Post — Trump turns Biden’s TikTok law into a big win: Washington Post
- Politico — US will control TikTok’s algorithm under deal, White House says: Politico
- TechCrunch — Here’s what’s happening right now with the U.S.–TikTok deal: TechCrunch
- Forbes — TikTok’s future US owners to control algorithm and data in proposed deal: Forbes
- CBS News — TikTok algorithm dispute remains key hurdle in U.S.–China deal: CBS News
Interesting read. The analogy at the end, about algorithms as natural resources was really powerful. The fight has changed: Governments always battled for oil, or land, or trade routes; now they battle for code and data pipelines. Even if the U.S. takes majority ownership of TikTok’s U.S. operations, I doubt that’s very much in real control over updates or covert channels. It remains to be seen, of course, whether this agreement will turn out to have established a precedent or simply represent another paper solution.
The TikTok conflict illustrates how algorithms have turned into the latest front in national security. Data may be localized; however, the true strength resides in who manages the recommendation engine. Even with U.S. ownership, concerns persist regarding concealed dependencies and future modifications. I appreciate the concept of utilizing cryptographic tools, such as audit logs and signed updates, to “trust but verify.” This goes beyond TikTok; it’s an indication of how nations will handle all foreign-operated platforms moving forward
This kind of reminds me of the cryptowars, where governments want full control over their tools and do not want other countries having influence. With TikTok, the United States is worried about foreign control over the app, access to its algorithm, and all the data from American users. I can see why they treat it as a big deal. It is not just about an app, it is about control and security, just like in the cryptowars.