MADANA: Taking data privacy back
Announcing First Investment from The Pioneer’s Vault
I’d like to announce that the first investment from The Pioneer’s Vault will be made in MADANA (Market for Data Analysis), which enables individuals to participate in their data market while simultaneously preserving their privacy. Its ecosystem functions with tokens known as PAX (Privacy Analysis Exchange). These tokens can be used to buy data analysis results from MADANA’s decentralized information pool while rewarding data producers.
What is MADANA?
Following you can find the official explanation of MADANA, described in their executive summary.
The MADANA — Market for Data Analysis — ecosystem allows anyone to get in on the data market with their own data and simultaneously preserving their privacy by design. The PAX (Privacy-Analysis-Exchange) smart token enables anyone to buy data analysis results from a decentralized pool of information while rewarding data producers and plug-in providers for their contribution.
Our world is becoming more and more digitalized and data is one of the most valuable resources. Data are to this century what oil was to the last one: a driver of growth and change. Flows of data have created new infrastructure, new businesses, new monopolies, new politics and — crucially — new economics. Digital information is unlike any previous resource; it is extracted, refined, valued, bought and sold in different ways. A battle will be fought over who should own, and benefit from, data.
Every data producer is creating a lot of data while using digital services like browsers, applications and social networks. The created data is in most cases not under the control of its originator. In general data producers give up all rights on their data by using a wanted service and accepting non-transparent general terms and conditions. Big corporations monetize this data and leave the data producers behind without any control or any profit. Through centralized data storage these corporations often become target of a hacker attack and sensitive information are leaked. As the amount of breaches, leaks and hacks is severely increasing, a new approach to handle data is necessary.
MADANA proposes a new data market ecosystem run on multiple smart contracts based on blockchain technology that allows data producers, data analysis buyer and plug-in provider to participate on the data market in a fair, anonymous and privacy protecting way.
MADANA’s ecosystem encompasses the following key elements:
- Client-sided data encryption framework to retake control of personal data.
- A method for contribution data anonymously to a remote system while getting paid in exchange through PAX token.
- An open data analysis market place for anyone.
- A decentralized pool of information.
- A method for contribution analytics skills while getting paid in exchange through PAX token.
- A method for getting analysis results of own data.
By platform design data producers of any kind can monetize their data without giving up control over their data or compromising their privacy. Data stays on the producing devices and will only accessed when needed for analysis. Data will only be processed in secured environments and afterwards deleted to minimize the risk of unwanted data breaches. The data analysis buyer never receives any data, only analysis results. Through such a system the data producers’ privacy stays protected.
Data Analysis Buyer
Anyone can purchase custom analysis results with optional cross-analytics insights from a continually growing pool of information. Data analysis results can be purchased on demand with no need for costly data management.
Plug-in providers contribute analysis schemes to the MADANA platform and can profit from their data analysis skills. Since the MADANA system protects the data producers’ privacy and offers incentives for the data producers, a whole new dataset will be available to the analysis schemes. Thus, new cross analytics findings will unlock value.
The MADANA platform will consist out of 100 Million PAX tokens. PAX tokens will be available in a public token crowdsale (ICO) launched out of Germany in 2018. The PAX token will drive all smart contracts in the MADANA ecosystem. PAX tokens main function will be the payment settlement by a smart contract between all three participants.
Data analysis results could be purchased through fiat money which will be exchanged into a specific amount of PAX tokens. Plug-in providers and data producers will be rewarded in PAX tokens for their contribution to the analysis process.
Depending on the future scope of functions and to secure processes inside the MADANA ecosystem the use of additional smart contracts is intended.
MADANA is currently submitting a patent which inherits the method to process data and create analyzes without allowing a single remote entity or process, including MADANA itself, to have a look at the data which is being processed. Therefore, MADANA is creating a whole new way how data is being handled besides current methods which either let the data broker or the buying instance copy and occupy data.
My reasons for investment
MADANA will be the first major ICO on Lisk. I’m very happy to support a project with roots in my hometown of Aachen. I see tremendous potential for MADANA to benefit the Lisk ecosystem by providing a data marketplace on a protocol level ready to be used by other Lisk apps. In addition, the concept can be applied to the worldwide data market as well. A study from the European Commission estimates that the value of the European data economy will reach €739 billion by 2020. This makes me incredibly confident that the data industry is large enough to experiment with blockchain technology.
Giving back control to people
I believe that the future will become so complex that there might come a time when specific modules running within a system may no longer be understood by any single individual alive. If we are talking about data privacy and data markets, it’s very important to give people as much control as possible, while making sure that the system itself is not being controlled by anyone at all, but only by itself. Otherwise, there is the possibility that modules may be manipulated by bad actors. However, since there are no good actors alive who understand these modules, the manipulation may never be revealed.
Therefore, in my opinion, there is a great need for a decentralized, unstoppable and immutable blockchain application for data privacy and data markets.
A trustworthy team made in Germany
The MADANA team consists of different specialists and experts; startup management, political influence, application development and blockchain technology are not new topics for them. But in the end, it comes down to grit; an attribute which founder and CEO Christian Junger definitely has. MADANA currently has 12 team members.
A few years ago I founded the first official and accredited Blockchain University Group in Germany with Christian, Yan and Eugen, along with a local Bitcoin Meetup. Since then, they have continued to take care of both projects.
Plans to be fully approved by the German BaFin
As a German, I want to support the German blockchain industry as much as possible. I think it’s a great idea that the MADANA team is seeking approval from the BaFin to conduct their ICO legally from within Germany. Blockchain technology has so much potential that it would be very unfortunate if Germany were to be left behind. Recent news from the BaFin as well as my personal experiences meeting governmental authorities at conferences give me hope that Germany still has a chance to participate in this technology of the future.
The above reasons also led me to my decision to join the project as an advisor in order to drive it forward as efficiently as possible. I’m not advising the project on a technical level, but solely on business and marketing topics. Advisory is limited to my time outside of Lisk and Lightcurve, and happens within the realm of The Pioneer’s Vault.
In January 2018, I invested 10,000 LSK (valued at €200,000 at that time) in MADANA as a pre-ICO investment.
The investment reduces The Pioneer’s Vault funds to 1,690,000 LSK. The next investment will not occur within this quarter.
Social media channels
Be sure to follow MADANA over social media and help support the first major ICO on Lisk with me.
All disclaimers from The Pioneer’s Vault apply.