Original Publishing Date: May 2018
What is PikcioChain?
PikcioChain is a secure and distributed permission-based platform specialized in the collection, certification, verification and exchange of personal data. PikcioChain lets businesses trade and exchange personal data in complete security and with confidence whilst simultaneously empowering individuals by giving them control of their personal data and enabling them to realize its financial value.
What problem is PikcioChain trying to solve?
A century ago the most valuable resource was oil. In the last decade a lucrative new commodity has spawned; Data. The world’s largest corporations collect, exchange and trade corporate, consumer-, meta- and, most important, personal data.
Due to the enormous value personal data in particular represents for companies, a large amount of money is spent each year on securing it. The general problem is that most of this data is stored in centralised systems, leaving the data at risk and the individual supplier of data at the mercy of corporations and bad actors.
When it comes to businesses, data security is not the only risk. When data is bought or exchanged they have to rely on a third party escrow, or trust each other. This creates friction in the data marketplace and reduces the speed in which these transactions can be made.
Moreover, when data is exchanged, the parties involved want to be sure that the data is the original data and has not been modified in any way. What is required is a way to know for sure, that it has been recorded and stored in an immutable way.
Lastly, while companies can sell and exchange data, the individual supplier of data does not have the option to give permission if it is sold, how often and to whom. And even if their data is sold, the company selling it is usually the only one benefitting and there is currently no mechanism for the users to be compensated.
All of these problems are solved by PikcioChain.
How does PikcioChain solve these problems?
One of the key features of PikcioChain is that data, in most cases personal data, is stored and transferred in a peer to peer way, not on the open blockchain. PikcioChain only stores the hashes and validation of data on the proprietary, private, permission-based blockchain. This solves regulatory issues, such as the recently introduced EU GDPR, allowing for mass adoption of the system.
Data is sent to the PikcioChain platform allowing verification nodes to verify and certify the data and store a hash of this data on a permissioned blockchain; the PikcioChain. The data, or even just the certification of data, can be offered on the PikcioChain data marketplace for (re)sale. This allows data that has once been verified to not have to be verified again and again, but still be used in a secure way. This is especially interesting for KYC purposes.
The individual suppliers of data can determine if only they should be storing the data, or if certain trusted nodes can store a copy as well. PikcioChain lets businesses trade and exchange personal data in absolute security and with confidence, while simultaneously empowering the individual suppliers of data by giving them control of their own data and enabling them to monetize it.
Some key benefits of PikcioChain:
- Fraud proof in terms of altering data or transaction histories. Data is only being exchanged with the full permission of the data owner.
- Data theft prevention through data storage decentralization. PikcioChain users store their data only on their own devices, rendering large scale theft of data impossible.
- Speed of transactions: By using a third generation blockchain platform, PikcioChain is able to offer almost instant transactions.
- Storing the data on users’ devices, while the hashes are stored on a permissioned blockchain, makes PikcioChain fully GDPR (and similar) compliant.
- PikcioChain is currently a platform, aiming to transform into a protocol within the coming two years. By offering a library of modular smart contracts we will enable clients to build their own custom marketplace on top of the PikcioChain protocol.
What is GDPR and why is it so important with regards to personal data?
The General Data Protection Regulation (GDPR) (Regulation (EU) 2016/679) is a regulation by which the European Parliament, the Council of the European Union and the European Commission intend to strengthen and unify data protection for all individuals within the European Union (EU). It also addresses the export of personal data outside of the EU. The GDPR aims primarily to give control back to citizens and residents over their personal data and to simplify the regulatory environment for international businesses by unifying the regulation within the EU. When the GDPR takes effect, it will replace the Data Protection Directive (officially Directive 95/46/EC) of 1995. The regulation was adopted on 27 April 2016. It will become enforceable on the 25th of May 2018 after a two-year transition period and, unlike a directive, it does not require national governments to pass any enabling legislation, and is thus directly binding and applicable.
Starting May 25th 2018, any EU company involved in the the collection, certification, verification and exchange of personal data has to comply with the EU GDPR. This is an exceptionally difficult task and PikcioChain offers an elegant, blockchain based and fully GDPR compliant solution.
What is KYC and why is it such a good use case of PikcioChain?
Know your Customer, or KYC in short, has been playing an ever increasing important role for large institutions, governments and corporations.
Whenever someone wants to open a bank account, or register an account (for example for a cryptocurrency exchange) they have to supply their information for the KYC process. This information usually consists of some data (name, birth place) and documents such as a copy of a passport and utility bills.
The data is then verified by, for instance, that bank or a third party KYC processor, after which their identity is certified and the account can be opened. This process takes time and is costly. Moreover, it has to be redone for every bank, institution or organization, which is very inefficient.
With regards to KYC in particular, PikcioChain offers an elegant, blockchain-based solution.
The individual supplier of data uploads his or her personal information and details to the PikcioChain platform. A trusted validator node, such as a bank, will process the this information and once it has been verified it will upload hashes of the data to the PikcioChain. This is done in a granular way as to make sure that if one document or piece of information is changed (because of a new utility bill for instance), the hashes of the other data pieces still remain the same and the data can still be reused, or sold.
Whenever another party wants to use this information for KYC purposes, they can receive the data from the user, hash it and compare it to the hash on the blockchain. If it already exists they can see that it has been verified before by trusted verification nodes and use that as a valid KYC. The more nodes that perform the KYC process, in combination with the information which nodes verified (bank vs small organisation), the higher the “reputation” of that data. We are calling this reputation the Trust Capital Index of data.
What is the Trust Capital Index?
In order to counter any bad actors, we’ve introduced a feature called the Trust Capital Index (TCI). In short, this feature analyses the reliability of data through different means, countering anyone that tries to use the system with ill intentions.
From a security perspective, each separate party that validates the same piece, or collection of data, will add an entry into the ledger for that data and will in effect create a sort of reputation of trustworthiness for the data and the data owner. It is a way for parties to judge the reliability of users and certain data on the system and to determine if incoming data is trustworthy.
What exactly does the B2B2C model mean with regards to PikcioChain?
While most competitors are focusing on the B2C (business to consumer) aspect of identity data management, effectively growing their data pool by positioning their identity management front end in a very competitive B2C market, for example via app, PikcioChain covers a B2B2C (business to business to consumer) approach.
This means that PikcioChain is combining its strength with its business partners and clients to build up their customer data pool. The services, websites, portals and solutions of are the front end to grow the data pool. PikcioChain is effectively the background mechanism in for handling all customer related data, thereby leveraging the immense customer base that the clients have. This makes growing the data pool highly effective and it then comes very naturally for the B2C part to engage with the individual data owner via the app.
While PikcioChain is more than just identity management, it is the use case that our clients in the banking and insurance sector have the highest need for at the moment. PikcioChain is a client driven company and therefore it makes sense to grow the business in the areas and markets where the need to comply with certain regulations is the strongest.
Which partnerships has PikcioChain established?
PikcioChain is currently building key partnerships within the NEO ecosystem, working closely with NEO as part of a strategic agreement. Key partnerships within the NEO ecosystem that are currently being built are with Onchain and Ontology.
Besides key partnerships in the cryptocurrency space, we strategically selected partners that have their routes within traditional business sectors, since we are a B2B2C company above all else. These strategic business partners are E&Y, PricewaterhouseCoopers and Capgemini.
What makes PikcioChain different from other credentials companies?
One of the key features of PikcioChain is that the data is stored and transferred in a peer to peer way, not on the open blockchain. Existing solutions store the data on public blockchains. This creates numerous problems. One of these problems is that it makes it impossible for the owners of data to completely remove certain data. Another problem is that this does not comply with GDPR as the data is on a public chain.
PikcioChain only stores the hashes and certification of the data on the proprietary, private, permission-based blockchain. This solves all these regulatory issues, allowing for mass adoption of the system. The basic idea is that the (original) owners of certain data can determine if only they should be storing the data, or if certain trusted nodes can store a copy as well.
PikcioChain lets businesses trade and exchange personal data in absolute security and with confidence, while simultaneously empowering individuals by giving them control of their own data and enabling them to monetize it.
Data is sent to the PikcioChain and verification nodes verify the data and store a hash of this data on a permissioned blockchain; the PikcioChain. The data, or even just the certification of data, can be offered on the PikcioChain data marketplace for (re)sale. This allows data that has once been verified to not have to be verified again and again, but still be used in a secure way.
Why PikcioChain rather than a contract based on Ethereum or Hyperledger?
Ethereum and Hyperledger (IBM) are both networks based on blockchain technology like PikcioChain but their more centralized infrastructure means that the individual user does not maintain control over their data.
Hyperledger uses only IBM servers to store and certify data meaning that users have to trust IBM. Compared to Hyperledger, Ethereum architecture is used and owned by several companies but when data is sent to the Ethereum blockchain, the user does not know where their data has gone. This makes it unsuitable for certain highly regulated industries such as the health and financial services sectors.
PikcioChain’s distributed architecture is fine-tuned and built according to the requirements of the data being processed. The verification nodes are stored by default on a minimum of 3 different entities allowing PikcioChain to verify transaction by consensus.
How is PikcioChain different from Civic, Verif-y or others?
Most importantly, we have a strong and established history and have spent the last three years developing the PikcioChain and its dependent applications.
Competitors in this field are often based on the sovereign identity model and don’t have their own blockchain. Moreover, some are even based on a centralized directory. PikcioChain is working with a B2B2C model where we solve problems for businesses while providing the necessary credentials on the data so that they have a value and therefore a market of interest.
Unlike some of its competitors, PikcioChain is working on it’s own chain and contracts, the PikcioChain. With that, PikcioChain already has a very promising list of large clients in different industries that are willing to pay for the PikcioChain product.
What is “The Wallet”?
The Wallet is a personal application that the individual user installs on his or her own device (e.g. laptop, smartphone). Each application works as the server for its registered user and, if permission is given, can act as a trusted server for other users as well. It is this decentralized server infrastructure that puts individuals in control of their data and as there is no centralized third party data storage. The Wallet offers users a safe data storage solution.
The Wallet will also grant the user access to the PikcioChain platform. Through this platform the user will be able to exchange and certify his or her own personal data. Data exchange will be end-to-end encrypted whilst the encryption key is generated on the user’s device by the application, making the data exchange secure.
Through the PikcioChain platform, The Wallet allows for an easy way of data certification. Any individual user can choose to sent his or her own personal data in a secure way to a third party. This third party is then able to, with the consent of the user, verify and certify all data sent. Consequently, it is the certification of this data, rather than the data itself, which is stored onto the PikcioChain.
The Wallet offers safe data storage, secure data exchange and easy data certification and verification. The first publicly available version is scheduled to be released soon.
How much does it cost to use The Wallet?
The Wallet will be free to download and most of the functionalities will be free to use. Some of the functionalities will require PKC as a form of payment and some functionalities will allow users to earn PKC.
How is my personal data stored securely on The Wallet?
Each transaction is end-to-end encrypted and the encryption key is generated on the user’s device by The Wallet. The user is the only one who has the key to decrypt their communications and data.
With data stored on individual devices, what happens in the event of a crash or theft?
The Wallet permits the export of an account file that contains a backup of the user’s data. If their device crashes, they can reinstall The Wallet and import their backup file.
We are further developing this account retrieval system. In the future, the user will be able to choose multiple trusted contacts as a backup source. These trusted contacts will store encrypted pieces of the user’s files. When required, the user will only have to import his or her key file with The Wallet, automatically retrieving the rest of the data from their contacts.
Are there any other copies of user data?
Primarily the user data is only stored on the user’s personal device or other trusted devices. Moreover the user data can be stored by third parties but only utilizing smart contracts, enabling the user to maintain full control over their data.
What is PikcioPro?
PikcioPro is our working title for the PikcioChain environment for companies. Whereas the individual user will use The Wallet to access to the PikcioChain platform, companies will use PikcioPro. Utilising smart contracts, data and certification of data can be bought or sold with the consent of the individual supplier of data.
PikcioPro is a paid service which grants access to the PikcioChain data exchange platform. Personal data certification for KYC and other regulatory purposes can be exchanged using the PKC Token as a form of payment. PikcioPro offers a reliable and confidential way of data exchange, knowing that smart contracts are upholding the demands and restrictions for the individual data supplier. By using PikcioPro to buy or sell certification data, companies remove much of the risk associated with holding, buying, selling and exchanging personal data itself.
Moreover, PikcioPro grants access to offer or use any smart contract service available on the PikcioChain platform. These smart contract services can range from small scale offers aimed at the individual data supplier to large scale commercial offers aimed at other businesses.
How does the individual supplier of data benefit from the exchange of his or her data certification between businesses?
Currently, companies can sell user- or metadata. However, users don’t have the option to give permission if it is sold, how often and to whom. And even if their data is sold, the company selling it is usually the only one benefitting and there is currently no mechanism for the users to be compensated
PikcioChain enables the the monetisation of personal data for the benefit of the individual data producer. When a company pays for data through PikcioPro, the individual supplier of data can be rewarded with PKC tokens, depending on the terms and conditions formulated in the smart contract.
Do companies always compensate the individual supplier of data?
The PikcioChain platform is setup as a free market. Consequently the value of data is not a given, the data is worth in PKC tokens whatever amount a company is willing to pay for it and more importantly whatever amount the individual supplier of data values it to be worth.
PikcioChain Token Sale Quick Facts and Figures
Token Type: NEO NEP-5 Token
Token Sale end date: March 31st, 2018
Hard Cap Reached: 12.5M USD
Token Sale Price: 1 NEO = 150 PKC
Individual Cap: No individual cap
Total Token Supply: Approximately 84M
Circulating Supply: Approximately 42.5M
Tokens Sold during Sale: Approximately 36.3M
What are PikcioChain (PKC) tokens for?
The PikcioChain (PKC) token will be the exchange token that is used on the PikcioChain platform. Initially it will be a NEP-5 (NEO) token but eventually it will be swapped to a native token. The PKC token will be used for different services ranging from the exchange of data certification to rewarding the individual supplier of data. For example, an individual supplier of data can choose to share his or her data and it’s certification with one or more companies and earn PKC tokens in return.
What is the total supply of PKC?
The total supply of PKC tokens is 83,927,273 PKC. That said, the total circulating supply will be approximately 42.5 million after tokens have been distributed.
What is the token distribution?
A total of 43.4% of total tokens are being sold, including strategic supporters, NEO’s allocation and the pre- and token sale. This number also includes bonus tokens.
The B2B premium inventory will only be sold at a premium to business clients. PikcioChain reserves the right to refill its B2B premium inventory by purchasing PKC from the market at any point in time.
The B2C growth pool is used for incentivizing customers to use the PikcioChain products, provide data and perform useful actions that generate value in the PikcioChain ecosystem.
Team tokens are vested for 2 years.
Until when did the PKC token sale last?
The PKC Token Sale has ended on March 31st 2018 and was completely sold out.
What was the PKC token sale hardcap?
The PKC Token Sale was completely sold out, reaching a hard cap of approximately 12.5M USD.
Was there an individual cap during the PKC token sale?
No individual cap has been set for the PKC token sale.
What was the price for PKC tokens during token sale?
The exchange rate was set at 150 PKC for 1 NEO. ETH to PKC price was calculated daily based on the NEO to ETH exchange rates.
Will there be a vesting period?
Team tokens are vested for 2 years, all other tokens are not vested.
When I purchase PKC, am I buying a share of the business or other security?
No, it’s important to understand that PKC are utility tokens. This means they are used to gain access to services within PikcioChain. As a utility token, PKC is neither a cryptocurrency nor a security token. Given this fact, it does not come with rights to any aspect of the business, instead it gives the holder the right to access particular services offered by PikcioChain.
Is the PikcioChain token at risk to be categorized as a security?
No, the PikcioChain token is a utility token, it is not a security. PikcioChain is a working product in the form of an in-house developed blockchain solution, with a new consensus algorithm and proven technology. Our PikcioChain token will have a utility purpose on the PikcioChain platform from day one.
Were there any country limitations on who could participate in the Pre-Sale and Token Sale?
US citizens and residents have been excluded from the pre-sale and token sale. Both accredited and non-accredited US investors were excluded from the pre-sale and token sale.
Moreover, any citizens or residents from the following countries or regions were excluded from token sale: Mainland China, Countries or regions comprehensively sanctioned by the US Office of Foreign Assets Control (OFAC) (including countries currently sanctioned by the OFAC such as Ukraine, Cuba, Iran, North Korea, Sudan and Syria).
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The PikcioChain Team