The question of personal data is closely linked to the digital evolution of recent years. A revolution driven by the development of the Internet. Technology that has driven the proliferation of connected devices and fueled the increased use of various online services. In fact, personal data has never been as strategic as it is today. Indeed, their exponential growth has aroused the enthusiasm of firms and organizations. This interest is for commercial purposes only. By collecting the personal data of their customers, these companies are able to personalize the offer intended for them. A possibility that opens up a avenue of new revenue opportunities, particularly in terms of targeted advertising. However, the rise of this data raises concerns about its confidentiality and the securing of individual privacy. Several abuses have also been reported in connection with the collection and improper use of this sensitive information. A situation that raises the question of how users could better control the use made of their data.
The monetization of the latter is a solution that is increasingly emerging. And crypto-related principles go a long way in implementing this option. This is essentially what we will see in the following lines. We will first look at the issues and challenges surrounding the use of personal data. The relevance of cryptos in securing these will follow. We will end with the prospects offered by the monetization of personal data via cryptos.
The use of personal data: current issues and challenges
Understanding the issues and challenges relating to the exploitation of personal data means seeing the common processes for their collection and monetization. It also means analyzing the risks associated with these practices and their impact on individual privacy.
When it comes to collecting personal data from their customers, companies use several methods. Online tracking, geolocation and profiling on social networks are the most used techniques. Companies are thus able to offer personalized products and services with well-defined targets.
These operational processes essentially pose two major challenges. First a problem of consent. Because the opinion of users is rarely solicited in the process. And when he intervenes, everything is done not to encourage informed and informed consent. This not only limits the real choice of individuals, but also exposes them to the vagaries of using the Internet.
Then, these collection methods open the way to discriminatory practices. These increase the vulnerability of users to hacks. Faced with these limitations, transparent data management is essential. This is what cryptos and their underlying technology bring: the blockchain.
Cryptos at the service of personal data protection
It must be said that cryptos play a crucial role in safeguarding personal data in the digital age. Indeed, thanks to blockchain technology, the confidentiality of personal data is more than reinforced. The direct consequence for users is the possibility of increased control over their personal information.
This is made possible by cryptography which allows the encryption of this data, but also their decentralization. As a result, the security of operations involving users is significantly improved. Which, ultimately, guarantees better protection of the latter against privacy breaches and hacks.
Concretely, cryptos offer users various possibilities to deal with these situations. Among them, smart contracts. Based on the blockchain, they allow individuals to define clear conditions for the use of their data. Thus, they can then protect the confidentiality of it.
This option is also offered to them by private keys, or by anonymity functionalities. Both promote much more controlled management of digital assets and their accessibility to third parties. Several companies are helping to materialize these alternatives for users. They also have the possibility of monetizing them.
This is the case with initiatives like Ocean Protocol and Datum. They offer decentralized platforms where users can sell their data anonymously and securely. This would allow them to enhance their personal information. A change from the current situation.
A browser like Brave also offers the same possibilities as Ocean Protocol and Datum. It particularly incorporates crypto by rewarding users, for their attention to privacy-friendly advertisements.
It is obvious that cryptos offer advantages for the protection of personal data. A role that they will continue to play as responsible, transparent and ethical management of their use is prioritized. Without this, the imbalance between the exploitation of data and the preservation of privacy will continue to widen. And with it, the lasting breakdown of trust between companies and users. However, the monetization of personal information offers prospects favoring the rebalancing of this balance of power.
Prospects and future of personal data monetization via cryptos
$147 billion. It is the total funds Google made in 2020 from advertising revenue. Revenue primarily from the targeted exploitation of user data to the detriment, and often without consent, of users. And the company is not the only one to excel in this practice. The other web giants Apple, Facebook, Amazon and Microsoft derive colossal revenues from similar uses.
This figure highlights the magnitude of the value that this data represents for companies. But especially for the users. Because, it means the possibility via the monetization of their confidential information, of a win-win partnership. In particular with the companies which profit from it today free.
Experts believe that in the future, users would take an active role in how their data is used to generate value. This means the reduction of the power of technology firms in this area. Because, if the emerging practice of data monetization becomes widespread, these companies would no longer have free access to customer data. They will have to buy them from the latter or negotiate access conditions with them. This would then have an upward impact on their operating costs, which would only be fair in the end.
According to them, technologies like cryptos would allow consumers to better understand the value of their data. This, by controlling their use in a world where the exchange of data is governed by intuitive intelligent assistants.
But such a perspective has political implications. Indeed, beyond the General Data Protection Regulation (GDPR), the issue of monetization of personal data requires additional rules. Its implementation cannot happen without strong national policies on data rights, privacy, ownership and compensation.
Conclusion
It should be remembered that at present, personal data represents an important windfall for companies. The latter, in accordance with their business model, exploit them to the detriment of users. This, while maintaining a certain opacity as to the actual use of this sensitive information. This, even when the users’ consent is given. With the possibility for them to monetize their personal information, the situation should change. The almost unlimited exploitation of user data would be significantly impacted. According to tech specialists, the expansion of blockchain could help restore the current imbalance. This, by allowing users to have greater control both in management and in their operation. But that remains wishful thinking without an improvement in the legal standards around the issue.
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