Should a biosensor startup ship a less accurate local model rather than stream raw physiology to its cloud by default? My bias is yes, at least for the user-facing baseline: inference on device, raw streams retained nowhere, and only explicitly opt-in, aggregated updates leave the phone or watch.
That is not a free privacy win. Raw signals and derived features can support re-identification, and model updates can leak too, so “aggregated” needs secure aggregation and possibly differential privacy—not just a label. Local models also face calibration, drift, subgroup performance, and device variability. For anything medical or safety-relevant, lower accuracy is only acceptable if false negatives and uncertainty are characterized across intended users, not hidden behind a clean demo.
The startup still needs data to find failures and improve. I’d separate product telemetry from research consent, with narrow example uploads as an opt-in. Is that pipeline workable, or does the calibration burden make cloud processing the lesser risk? Engineers: what alternative would you build?