How Facebook and other social media’s business plans will be revolutionized by blockchain technology.
Most of you probably heard of the not so recent data scandal with Facebook. Facebook’s Cambridge Analytical and other data privacy scandals have finally caused the public to thoroughly look into Facebook’s business plan. Its stock price went from the high of $217.50 to the current price $153.5 which amounts up to 28% decline.
Here are the three fundamental reasons for the fall of Facebook:
The market has realized that GDPR and the congress hearing about Facebook would put immense pressure on its business model. Facebook as a platform was never the product, instead the users on the platform are the product! Facebook makes money by selling user’s data so companies and political groups can run ads based on the data that is collected through the users to achieve their goals.
There are too many security breaches that have happened in the past and the present with the latest security breach exposing more than 50 million users. This information involves personal data which could lead to many identity fraud issues.
Users on Facebook provide value to the ecosystem. However, they do not get compensated while Facebook is cashing in billions of dollars every year selling the data of its users. Facebook’s value is determined by the user foot traffic. Therefore, users should be compensated.
So how can Blockchain solve it all?
Blockchain is a platform with smart contracts that can solve many use cases other than just crypto-currencies. Here are the most relevant solutions:
Blockchain technology enables users to own the right to their own data. Blockchain stores immutable records, and they are distributed among every user — each of whom have their own private cryptographic key to access their own vault that stores their own data.
The reason why Bitcoin has not once been hacked since inception from 2008 until this date is because of the underlying technology. Blockchain is a distributed ledger system where information is stored not in a single, centralized database, but in a potentially infinite number of places. For hackers to breach a decentralized system with enough participant nodes is practically impossible right now.
So how can users profit from sharing their data? Simple. Blockchain tech can be used to track and follow how your data is being used. Now you own your IP of your data and get compensated whenever it is being used.
A quick summary:
I foresee in the near future that there will be a revolution in how society views data. Not only will data become the most valuable asset in the world, but also all our personal data will be on the blockchain. We as the provider of the data will own the IPs of our data, control it and monetize it.
I am a co-founder of Aqua Intelligence that is currently developing the grand vision mentioned above.