Introduction to Measurable Data Token(2/5) — Why Traditional data trading sucks?
Why Traditional data trading sucks
A traditional data trading model mostly consists of three parties: Data Provider, Data Buyer, and Users. In the current model, only the economic incentives of Providers and Buyers are aligned, but in the new model we propose, incentives of all three will be aligned.
Data Provider
Data provider is the medium where data is generated. It can be an app, a website, or any service that acquires and retains users. Use cases for the collected data include:
- Tracking users behavior for product enhancement
- Precise advertising where revenue is shared with advertisers
- Selling anonymous user data to third party buyers
Data Buyer
The buying entity can be a merchant, advertiser, investor, big data institute, or other company that requires the data to predict trends or make decisions. As an example, a consulting company without direct access to first-hand user data could purchase data from a third party provider. Since it is difficult to verify the actual source of the data, mostly buyers do not have guarantees from any party that the data they got is real, clean or even legal.
User
End users who willingly or unwillingly share their data with all other parties. In the current model, their data sharing activities have no economic gain.
Introducing A new ecosystem for data exchange
The era of trading data without user consent is over. The new ecosystem is decentralized, impartial, and mutually beneficial. To change this unfair and inefficient trading model, we need a new platform and unit of data exchange.
The first step towards fulfilling this vision is to introduce Measurable Data Token (MDT), a new token for data exchange.
Measurable Data Token (MDT) connects users, data providers, and data buyers and denominates the value of data. It compensates users for sharing anonymous data points while providing data buyers and providers with a more efficient trading model.
The MDT is a blockchain-based distributed computing platform with smart contracts securely stored in the Ethereum blockchain. It denominates the value of data in this new economy.
In this new ecosystem, sharing one’s data is no longer a superfluous behavior; users are incentivized with MDT for the actual data points exchanged. By offering more transparent knowledge of each data exchange for all parties, users will also be more motivated to join this initiative.
On the other hand, buyers are also provided with a more efficient exchange model where all transactions are strictly enforced with cryptographically secure smart contracts. In traditional closed data exchanges, buyers used to be at risk of buying invalid or fake data without any ways to verify. In this new open model, buyers also participate in the validation process of each transaction which ensures they will receive a more trustworthy and risk-free deal.
Measurable Data Token (MDT) connects users, data providers, and data buyers and denominates the value of data. It compensates users for sharing anonymous data points while providing data buyers and providers with a more efficient trading model.
*This is the 2nd blog in a series of five on What MDT is and How it works. Stay tuned on the following updates!
Read the MDT WhitePaper: http://measurable.net/docs/whitepaper.pdf
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