Here’s how Internet data-tracking works right now: Internet services and mobile applications collect user data and track in-app behavior. This information is sold to data brokers who source corporate buyers from different sectors.
Traditionally, data brokers have collected user-generated data from various sources and package it into separate user profiles. Brokers monetize these data profiles by selling them to private and public entities. Many organizations draw insights from the raw data to make informed decisions that have a direct or indirect impact on the lives of ordinary people.
But the people – the ultimate source of the data – have no control over how their data is used and receive none of the rewards when it’s monetized. They’re completely sidelined.
However, blockchain technology is contributing to the introduction of world-class market research platforms that are decentralized. These networks transfer control of data to individuals. This allows anyone who generates data online to assume ownership and monetize the information. One such platform is Insights Network.
The Insights Network was established with the aim to provide individuals a secure infrastructure for monetizing their own data. The idea, basically, is to cut out the middle man and let users serve as their own data brokers. The network allows individuals to manage and monetize their data through the use of secure multiparty computation, blockchain solutions, and smart contracts.
The Value Of User-Generated Data:
Data mined from web and mobile app sources generates billions of dollars for data brokers like Acxiom and Cambridge Analytica. Acxiom reportedly stores up to 1,500 pieces of information on millions of Internet users in the United States alone. The information is used to generate detailed insights into consumer behavior. A report published by Forbes revealed that the Big Data Analytics industry is worth more than $200 billion annually.
An ever-increasing number of businesses rely on data brokers to access critical insights on consumer behavior. However, consumers who generate the data are not benefiting from the industry. In some cases, the user-generated data stored centrally by the major players in the industry is stolen by hackers. This compromises consumers’ privacy rights. Fortunately, Insights Network provides a viable solution.
The Technology Powering Insights Network:
The Insights Network platform is built on EOS (an epic blockchain operating system), which enables rapid processing of transactions. The platform is set to become the first network to deploy secure multiparty computation (SMC) for commercial use.
The protocol is used to validate data with the blockchain through distributed cryptography. This is aimed at eliminating the need for third-party services when it comes to processing transactions. That’s crucial, because it allows for the fast, fee-less transactions necessary on a platform that is making lots of little payments to individual users rather than a single big payment to a data broker.
These protocols are trustless and provide complementary features: SMC offers privacy and the blockchain technology provides transparency. Micropayments are processed instantly and the sender incurs no fees while the receiver is charged a token amount. This gives the platform an edge over prominent networks like Ethereum and Bitcoin, which have sender fees and often process more slowly.
If that all sounds like techno-babble to you, here it is in plain English: the Insights Network allows regular Internet users to monetize their web use data anonymously and securely, and it allows data buyers to request and purchase specific data sets, paying users directly in micropayments of blockchain tokens in return for instant data access rather than paying a giant lump sum to a data broker and then waiting for the data to be collated and sent.
As it all happens through a decentralized blockchain, it’s entirely trustless, so there’s no risk of either side running out on a deal.
Secure Storage & Exchange Of Data
The platform handles different types of data, including providers’ data points, profiles and personally identifiable information used to verify identity. Profile information can be stored on the user’s mobile and desktop devices while data points are stored in smart contracts. Information stored by the Insights Network is encrypted to ensure security.
User profiles provide a practical way to target specific demographics without compromising on privacy. For this reason, a requester can verify that pieces of information match their requirements through a secure multiparty computation. Both the data provider and requester are given an opportunity to handle the computations. In turn, the results of the entire process are assembled and distributed by the smart contract.
Once the requester is satisfied that the datasets meet the desired requirements, payments are processed by the blockchain in a single transaction. The blockchain simultaneously delivers the data to the requester. If one part of the transaction fails to complete instantly, the entire process is canceled because the payment and delivery of data must occur at the same time.
Providers remain anonymous but their identity is verified to uphold the network’s integrity. This is aimed at ensuring that requesters can have confidence in the datasets available on the platform. The Insights Network verifies the authenticity of ID documents provided by users through relevant third parties, such as employers. A verified user’s status displays a digital proof of authenticity on the blockchain, which makes it easier for requesters to know that a given provider passed the verification process.
The INSTAR token
INSTAR is the native cryptocurrency for the Insights Network. The coin is used to pay data owners who share data on the platform. Buyers acquire advanced datasets by paying with INSTAR tokens.
The total supply of INSTAR is 300 million coins, distributed as follows:
- 5 percent was sold in a pre-sale
- 35 percent was sold through the main token sale
- 30 percent is reserved for the Insights Network ecosystem
- 30 percent has been set aside for research and development, employees, advisors, and operations
Users who join the platform early will be rewarded with INSTAR tokens and the total amount reserved for that purpose stands at 90 million tokens. The rewards also cover participation in market research conducted by the network and its partners. Importing ten pieces of verified data earns users a single INSTAR token. As a result, the 90 million coins dedicated to the rewards are expected to generate 900 million data points, thus provide a strong starting point for the platform.
The Insights Network Team
It’s still early days for Insights Network, but the project is bolstered by an impressive team that includes a co-founder trifecta with experience growing a Y-Combinator-incubated startup, lead developers with degrees from schools like MIT and Stanford, and a knowledgeable and experienced lineup of advisors. While Insights Network certainly isn’t the only player in the blockchain data management space, it’s off to a solid start and clearly has a promising future ahead of it.
