Shiv Malik explains why the data economy is rapidly moving towards decentralisation, powered by technology like the Data Union framework, and shares the implications for future business leaders
There’s a reasonable chance you’ve heard the term ‘decentralised internet’ or perhaps ‘the internet of people’ by now. If not, decentralisation in this context refers to a vision of the web without big tech giants like Google and Facebook holding all the cards.
A return to the original ethos of the web, before the centralising platforms appeared, but powered by modern developments like blockchain.
The internet of people (IoP) is closely related, which sees real-world linkages, verified through personal device-to-personal device interactions, hosted as decentralised and secure peer-to-peer networks.
People storing and sharing information on their own computers and making it available using IoP applications. The decentralised web uses open infrastructures, so developers don’t need the assent of major platforms to do anything meaningful.
The movement has been accelerated by increasing public concerns around the harmful effects of dominant, data-mining, social media platforms. It aligns closely with sentiments shared in the recent Netflix documentary, ‘The Social Dilemma’.
Microsoft’s ‘Data Dignity’ initiative and Andrew Yang’s ‘Data Dividend’ campaign are further evidence of growing mainstream appetite for change – both seek a fairer approach to the economic structures engendered by platform monopoly.
Democratising our data
Beyond this, there are other benefits from increased decentralisation, particularly around improved visibility and control of the data we create online every day. Data Unions are a relatively new development which provides an opportunity for businesses and individuals to realise the value of this information.
Until now, the majority of the data we generate browsing the web and using smart devices is controlled by the giant centralised platforms mentioned above. By joining a Data Union, individuals can earn money as they browse the web, use smart devices or stream digital services. They also allow users to decide which data points to monetise and what to keep private.
Businesses can also monetise their data in an ethical and compliant manner. By sharing revenues with customers, business owners no longer face the dilemma of either selling data behind their user’s back or not selling it at all.
So, what actually is a Data Union?
A Data Union is the framework that allows people to easily bundle and sell their real-time data. On its own, our data holds little value, but when combined in a Data Union it aggregates into an attractive product for buyers.
Data is shared through an app on the device or object via Streamr’s Data Union framework, a toolbox, which any developer or company can integrate into their existing products. It also allows individuals to choose which particular data types they share.
This information then passes, encrypted, through the Streamr Network, to the Data Union where it’s bundled with others’ data for sale on the Marketplace. This is crowdselling and has the potential to generate unique data sets by incentivising trade directly from data producers.
A Data Union can be configured to capture any data. For example, a film production company could commission their own app to allow people to capture and sell their film and TV streaming habits paired with their demographic info.
The production company controlling the app takes responsibility for setting the terms of the Data Union. This includes its price, percentage, scaling, management of members, and marketing the data products to buyers.
Information is never saved by the Data Union and is only used to inform wider trends – not hone in on individuals. Users get paid in cryptocurrency and the company gets real-time insights into viewer trends to inform commissioning decisions.
Why should I care?
Trading information in this way allows individuals and businesses to finally realise the value of the data they create, rather than allowing big tech to take all the profits. Data Unions also enrich information markets. Entrepreneurs, startups, researchers and SMEs can gain a competitive advantage by accessing data sets previously off-limits.
Data Unions also present new opportunities for businesses across every sector, since they can be integrated into applications, websites or IoT-enabled devices. Perhaps your business produces smart living appliances or you’re an entrepreneur with a wellbeing app? Integrating this technology enables you to bundle up information from users for fair and compliant monetisation.
In this way, Data Unions provide commercial adopters with a compelling USP: users can earn money for their information and gain greater control over what happens with their data. Businesses can do this in a fully compliant manner, without risking a privacy scandal.
Now, and the near future
The technology is already being used. Swash, the first ever Data Union, successfully gained seed funding and already has thousands of users earning money as they browse the web.
The framework has also been applied to improve the lives of financially marginalised groups. Tracey, a blockchain-enabled Data Union incentivises Filipino fisherfolk to record catch and trade data digitally to trace seafood products in the first mile of the supply chain.
With regional fish stocks declining, accurate catch yield data is vital. It also helps address seafood mislabelling by improving transparency and traceability throughout the value chain.
By providing the data, unbanked fisherfolk can gain access to previously out of reach finance and loans. As well as the Tracey app, the project involved the WWF and UnionBank of the Philippines as key partners.
Fisherfolk are incentivised through direct data monetisation, via the Streamr Marketplace where data is sold to third parties such as retailers and final buyers, and indirect monetisation, whereby institutions can access the data for free by offering services such as micro-financing.
The movement continues to gain momentum. In October we published an updated version of the Data Union framework for entrepreneurs around the world to integrate into their offers to the benefit of their users, celebrated with a two-month hackathon in India.
Streamr is also offering seed funding and grants to developers to support the creation of new Data Unions in the evolving information economy.
The near future promises further progress towards this decentralised and ethical approach to trading data. Individuals and businesses can have a fairer stake in the revenues generated by this trillion-dollar market, while gaining greater visibility of who buys their data and how much of it they share.
Shiv Malik is Head Of Growth at Streamr. A former Guardian investigative journalist, broadcaster, and author of two books, Shiv is also a Co-founder of the Intergenerational Foundation think tank.
