The Future of Personal Data: A Followup

The Next Step

A few years ago, I wrote a post about the Future of Personal Data as a result of all the ultra large-scale systems reading and exploration I was doing. Google was foremost in my mind when writing that, but Apple has since come into the spotlight here as well.

Recently, Matt Zimmerman has decided to leave Canonical and join forces with Singly, an exciting startup company focused on secure user data storage and the socialization of (and development around) that data. In this blog post, the following core values were given about the software underlying Singly:

• I own my personal data
• I want my data to be useful to me
• I make the decisions to protect or share my

I would like to see the following added:

• I make the decisions on how my data is used
• If my data is sold, I should get a return for this

This is not petulance speaking :-) This comes from a historical perspective on social and economic fairness. Witness the changes in individual rights and personal finance since the industrial revolution...

Fair Market Value

There are probably many solvent entities out there who would claim users are already getting a return for the use of their data: free email and office docs from Google, free cloud services from Apple, etc. But I would imagine that there are massive margins being made on user data, and services (as valuable as they may be) are a paltry return for such a gold mine. I cannot help but be reminded of the selling price of Manhattan Island or Alaska (in 2011 values, the Lenape Indians got around $29.61/square mile; the Russians got about $150.77/square mile).

Money makes a good point, but personal data (and this post) isn't about the almighty coin. This is about clearly defining who owns what and ensuring that those who don't want to be taken advantage of, aren't. This is about identifying exploitation, and building something better and longer-lasting in its place.

Who's Going to Pay for What?

In David Pakman's "Disruption" blog post about Singly, he makes the following comment:

"I cannot see consumers getting into the business of selling their data to marketers so they can see personalized advertising. Instead, I believe marketers will be encouraged to offer value to us in exchange for access to our data."

I have to agree with him... but I can only offer a qualified agreement. True, I find it hard to believe that users will be selling their data directly to marketers. From the user-side, the pain of inconvenience would not likely be worth the payoff; at the marketer end, individual data is useless, and munging an in-house-built collection would incur a lot of overhead not part of their core business.

However, users' data stored in lockers, updated regularly, pre-processed, has enormous value in the market. Right now, Apple and Google are making eye-crossing amounts of money from data just like this. Again, I would imagine that this data is only really valuable in large quantities and for interesting, identifiable demographics

If users provide their data, but in exchange only get a "nicer app" or a "useful utility" I'm going to cry "foul!" (unless someone can show me the actual numbers involved and unequivocally prove that fair exchange is occurring).

You Say Disruption, I Say Revolution

Instead, if a service such as Singly, were to offer a co-op style dividend payment system to all of its users, that would seem to be much more fair. Not only that, it would be the beginning of a market revolution. This is not to say that co-ops are some perfect economic model, but rather that the data we, as users, generate is of immense value. The more that Singly has, the greater potential for revenue. The more buzz that builds around Singly users generating revenue from their data, the more users they get. With mass-adoption, a new sub-economy is born.

Perhaps a better model than co-op is that of a mutual fund investment firm. Each Singly user has a portfolio of data. Depending upon each user's preferences, any or all of that data could be used by Singly to generate revenue. Some groups of users will generate more than others, and users in these groups would get greater returns.

Whichever analogy you prefer, with a little exploration it seems fairly clear that opportunities for a large payout are present. For instance, I like to imagine a world where entities like Apple and Google can't harvest user data, but must go through brokers whom users have given their permission to sell their data for the most profit. I also imagine there's a lot of lawmaking that would have to take place... and even more lobbying.

Even with that, Google and Apple would still make money hand over fist (or they'd become brokers themselves) -- enough to continue providing free services. Yet at the same time, users would be in control of their data; they'd be financing (or financially augmenting) their data-consumption lives with said data.

With the right press coverage, Singly could find themselves not only swamped with a massively growing user base, but at the very center of a new economy. With the right level of negotiation and coordination, businesses could buy into this new paradigm without losing their shirts in the disruption.

A Plea

In summary, I applaud the goals and vision of Singly. I, for one, would deeply appreciate writing applications against their data locker (to any Facebook or any of its dubious applications), where a user's rights are clear and protected. That being said, Sinlgy would have my eternal allegiance if they also took up the cause of rights for user data in the market place; if they helped transform the current nascent data economy into a world economy capable of achieving as-yet unimagined financial heights.

And if not Singly, my loyalty would be given to whomever did do this.

The Future of Personal Data

In a recent post about ULS systems, I said this:

The balance of power, from individuals all the way to the top of whatever organizations exist in the future will rest in information. Not like it is today, however. The "information economy" of today (+/- 10 years) will look like kids' games and playgrounds. The information economies this will evolve into will be so completely integrated into human existence that they will resemble the basic necessities like water and food.

I'm not going to focus on the ULS systems topic in this post, but there is a very deep connection between privacy, personal data and all things ULS. Any thoughts of a ULS system should be coupled with how this will impact the system's users and their data. Any thought of our personal data's future existence should include the anticipated future of computing: ULS systems.


Inside and Out

In a nutshell, here's how things look:

• Yesterday: Paid Services - You want something, you buy it. Demographic research is expensive and mostly outsourced.
• Today: Free Services - You want something, companies give it to you for free... in exchange for your demographic data.
• Tomorrow: Information Economy - You want something, you leverage the value of your information in brokering the the service deals that mean the most to you.

What do we have right now? Companies are fighting for each other over who gets to have our data for free. Yay, free stuff! We used to have to pay for that sort of thing! But paying for people to hold your data was the old, old world. Having them do it for free is the old world. Here's the new world: They pay you.

Why would they do that? Why would things shift from the current status quo? The value of personal information.

There are many ways to assess the value of personal information, but let's look at a few from the perspective of large organizations (entailing everything from government to business). Simplistically, we can assign value to a single individual's data based on the value of a large collection of many individuals' data. The more participants, the greater the value of the whole, and therefore the greater the value for each individual's data. This perspective is limited because it treats data very staticly. The data may change, but in relation to the system it's "acquired" and inside as opposed to "for sale" and outside.


We Are the Markets

But the value of our data is not defined simply by the presense of bits or membership in a valued data conglomerate. Our data is not just our emails, our medical records, our purchasing trends, nor our opinions about local and national politics. Like an organism moving through an ecosystem, our data is dynamic and living; it is the very trace we leave in the world around us, be it digital or otherwise.

Any part of our lives that is ever recorded in "the system" provides data and comprises part of our movements through this system. Our traces through this digital ecosystem impact it, change it, shape its future direction. The collective behaviours (not just collective data) are immensely valuable to organizations. Their value is on-going and growing, with accrued, compounded interest.

Static data bits seem like property to us: you can buy them, you can sell them, you can store them somewhere. But moving, living data... that's a different story. That's not a buy-once commodity; ownership of that might be tantamount to slavery in a future, information-based economy. However, organizations might opt to lease it, or individuals might turn the past back on the future and offer license agreements to organizations.

More likely, though, individuals will form co-ops or communities (we have already seen this happend extensively in today's Internet) with shared mutual interest. Seeing how a group entity with shared values has a larger effect on the system than single individuals, data from such groups would likely be much more interesting and number-crunch-worthy. The greater power a group has to perterb systems' ecomonic or political trends, the more valuable that group's data will be to other groups.

In addition, I'm sure there'd be all sorts of tiered "offerings" from individuals and groups: the juicier/more detailed the data, the higher the premium offered. The changes this will introduce to markets (global and local), legal systems, and politcal organziations are probably barely imaginable right now. But what would it take to get us there? What would it take for my data and your data to be valuable enough to transform the world and make Wall Street look like an old-time, irrelevant boys club?


Privacy

One thing: a fanatical devotion to privacy, pure and simple. Security and a fanatical devotion to privacy. Two things! Okay, reliability, security and a fantaical devotion to privacy. Three things!

Monty Python references aside, an economy that values the data of individuals and groups can only arise if that data is secure. If we live in a topsy-turvy world where the Government, MPAA, RIAA, the Russian Mafia, and Big Hosting Company are pirating our data, then we're hosed. However, if our data is secure and contracts are effective, then we will have a world where data is the currency. There are an incredible number of hurdles to overcome in order for this to happen, however.

• The System - we need a system where user data can be tracked, recorded, and analyzed, and there's enough of it to matter
• Storage - we need our own, personal banks for our data (irrefutable ownership rights and complete power over that data)
• Transactions - we need a mechanism for engaging in secure, data transations
• Identity - when making a transation, we need to be able to prove unequivocally that we are who we say we are
• Anonymity - we need to decouple activity in the system and identity, thus requiring organizations to come to us (or our groups) to get the definitive data they need
• Recourse - we need a legal system and effective laws that protect the individuals and groups against the crimes of data-hungry organizations; fortunately, we will have had years of established precedent protecting the sellers from the buyers... oh my, how the tables turn!

And that's just off the top of my head. There's got to be tons of stuff which hasn't even occurred to me.


Closing Thoughts

Information will be as essential for us as water, yet there is a very interesting divergence from the example of a hydrological empire: each individual is the producer of some of that metaphorical water. By virtue of this difference, we hold the keys of the empire. We will be more a part of the economic and political powerbases than we have every been at any time in human history.

Of course, that means that we've got to get ready :-) This is already being done in many different ways. Everything from community housing cooperatives to small, co-op banks; from capabilities-based programming models to secure online transactions. Like the next 20 years of research needed for ULS systems to become a reality, we've got just as much work to do in order to guarantee our place in the economies of the future.