[UDC Report] Your data is money
[UDC Report]-6 Data is a source for profit these days, as companies utilize customers’ data to earn profits. Yet there hasn’t been any news of internet service providers, especially huge platforms like Google, YouTube, Facebook and Naver, actually paying their users for their information. Why have things turned out this way? Recovery starts with ownership The view of the economic and social value of data has reached a plateau. Since the European Union launched the General Data Protection regulation in May, data of EU citizens has been limited from being sent overseas. Contemplation on the legal status of data has begun. Brittany Kaiser, founder of DATA who acted as a whistleblower in Facebook’s private information leak scandal, said during the D.FINE Conference in early October that the digital quotient (DQ) will be important in the future just like the emotional quotient (EQ) and intelligence quotient (IQ). The controversy may have started as platforms have become centralized. In the DQ era, decentralization will occur from ecosystems using blockchain. If that happens, individuals’ data will no longer fall into the hands of a few. If I provide my personal information, I will receive tokens back. Everyone would have control over his or her own data and manage them. I certify who I am Personal data is not just confined to social security numbers, gender and physical information. For such information to be free of central management systems run by the government, banks or individual websites, a different type of self-verification system is needed. That is why the Decentralized Identity (DID) technology based on blockchain has drawn interest. Using the DID technology, people can own and use their own data. Smart contract certifications based on DID will make platform use more efficient from having no third party coming in. Stopping platforms becoming kings Daimler Mobility AG has been using DID for a rental car service offered at its blockchain factory launched in July. In the current rental car market, customers in need of cars visit centers, identify themselves and pay a price to have car keys in their hands. “Through the Know-Your-Customer Rule process, we can check the validity of users’ legal licenses and reduce costs from eliminating the middle man in the process,” said Yan Junge, head of blockchain development at Daimler Mobility AG, during the Upit Developer Conference held in September. With no need to show their identifications, customers can identify themselves through the DID system and use online channels to receive their cars. Paying for the service could also happen through blockchain. Mismatching information at the rental car market is not just a problem between customers and platforms. If large platforms offer their customers’ data to smaller and newer businesses, users have more options. “Daimler Mobility AG’s open platform is freely open and run through open source,” Junge said. “Platforms can offer services that everybody wants, and everyone follows the same rules, enjoys the same rights and are free to join or leave at any moment.” Co-existence instead of competition MILK, known for the Yanolja coin, is taking a step further and offers rewards in cryptocurrency for customers offering their information. MILK is the first blockchain-based reward system platform that came from an alliance of travel, accommodation and rental car companies including Yanolja, Dealcar and Seoul Airport Limousine. Companies included in the alliance allow their users to transfer coins from their own platforms to coins for the MILK platform. By using a united currency, platform users are offered a wider range of choices. For example, a customer with points from Yanolja can use the points on MILK to rent cars or enjoy services they want by again changing the Milk coin to Dealcar points. MILK Alliance also stimulates co-growth for its member companies. By using the single blockchain-standard offer in MILK, alliance companies can easily step into the ecosystem merely by running their APIs. Through co-marketing on an open platform, MILK Alliance companies move toward co-existence rather than monopoly. ※UDC 2019 videos and presentations can be found at https://udc.upbit.com/program/detailed_program, also the full report can be found at https://static.upbit.com/reports/udc2019_report_en.pdf. This report was sponsored by Upbit, and the information in it is based on the Upbit Developer Conference held at Grand Hyatt Incheon on Sept. 4 and 5.