SWIPECrypto and How Data Privacy Landscape will Change Forever (Part 2)
You can read the first part of the essay here.
It’s far better to read the first part to get a background understanding before continue with this one.
In the first part, we have go through three fundamental things about SWIPECrypto (SWIPE) :
- What is SWIPE?
- Who is involve in SWIPE Ecosystem?
- What is the problem that SWIPE try to solve?
We shall continue onto the next point, which is :
Fourth
What Solution SWIPE is proposing to solve the data privacy issue?
SWIPE will transform the nature of Database Ledger that owned by company such as MARKPLAS (you can read the study case on the first part), which is Closed and Centralized, into a Decentralized Database Ledger, that inherit two main features :
- Apps User will held a private key for User Behavior Data that (s)he contribute into the Ledger
- All of the User Data will be fully — encrypted, so no one have the access into the data, UNLESS Apps User as the OWNER of the data allows it.
This is the Ledger that owned by MARKPLAS.
Data Buyer basically can access all of users data without any form of permissions from Apps User.
On contratry, This one is an illustration, if the Ledger is instead stored on SWIPE Ecosystem.
All users data that got into the Ledger will be automatically encrypted, so no one can access the data without the user consent.
Still remember Alice, the Apps User and John, the Apps Developer from Part 1?
If John is the Apps Developer inside SWIPE Ecosystem, then when MARKPLAS comes to offer him buying user behavior data of KOMPOS Users, Alice as the users, will get a notification, that looks more or less like this one.
(What is SWIPE Token? We will get into that in a bit)
If Alice, choose Yes, thus approving the data acquisition by MARKPLAS to go through, then MARKPLAS can look into Alice User Behavior Data in KOMPOS.
Pretty much will look like this
If we look closely, ONLY Alice’s Data inside KOMPOS that got unlocked on the Ledger.
If MARKPLAS want access to Alice’s Data in other application, such as Mobil Legenda, Tokokpedia, etc, then Apps Developer of respective Application must also give same notification to Alice.
And ONLY WHEN Alice giving her permission, then MARKPLAS will have access into Alice’s Data.
Private Key and Encryption Feature will give a Fundamental Shifting Paradigm of Data Monetization, where the ownership of the data will comeback to the Users instead of Data Buyer or Apps Developer.
This paradigm shift will support SWIPE Vision to enable a FAIR and Transparent Data Monetization Process, both for the Apps Developer and Apps User (the detail is in part1)
— — — —
Fifth
Why SWIPE have to utilize Blockchain Technology and Crypto Economics through Token Creation, in order to provide this solution?
- The Ledger CAN NOT be OWNED by SWIPE
If the Ledger is fully owned by SWIPE, then basically, there is no difference between SWIPE and others existing system, where the Ledger is controlled and owned by only handful of Data Buyers.
Who can guarantee that SWIPE Team won’t abuse the data if the controlled is solely on their hand?
For that reason, SWIPE using Blockchain Solution to Distributed Data Storage which is IPFS Protocol (IPFS stance for Inter Planetary File System) that developed by a Computer Scientist named Juan Benet along with his team at Protocol Lab.
IPFS is (according to their official website) a peer-to-peer hypermedia protocol to make the web faster, safer, and more open.
Hypermedia means all file format, whether it is a text, photo, video, or anything else can be processed through IPFS Protocol.
How their protocol can make the web peer to peer, faster, and safer?
Actually it’s very simple yet fundamental.
Please watch this brilliant video by a Youtube Channel called Simply Explained-Savjee about how IPFS Protocol Works.
By using distributed network of file keepers that keep IPFS Object (data and content which stored inside IPFS Network) then none of the party has a full authority over ones data set.
If the Data Buyer wants to do Data Query, the Apps User as the owner of Data must do authorization using their private key, and only then, Data Buyers will receive the Data Set from couples of file keepers inside IPFS Network.
With this kind of method.
NOBODY OWN THE LEDGER.
It’s all shared between group of anonymous data keepers.
(note : if you guys wondering what is the incentive for the data keepers inside IPFS, you can learn about their Token Project called Filecoin here)
2. Smart Contract Function
Because the process on the previous point sounds complicated, how ca we make sure whether SWIPE will do that process in such orders?
This is where Smart Contract comes into play.
(what is Smart Contract? if you are Indonesian, i already write a piece about it here, if you are non-Indonesian you can read the explanation here.)
Smart Contract that written on computer code can be examined at any given time by anyone, since the nature of it is decentralized.
Also Smart Contract will execute every line of command that fulfill the Smart Contract condition and requirements without needing any additional verification from third party, or even from SWIPE Team.
Smart Contract Function will also utilized to execute Marketing Campaign that run by Data Buyer from SWIPE Ecosystem, so the campaign will be based on real — time data, instead of old, irrelevant data.
Many of current marketing campaign doesn’t have any clear metrics, only measure how much impressions that have been reach, without knowing which Device ID getting that impressions, and how much impressions per Device ID, and what is the follow up action from users who see the campaign.
With Smart Contracts, the execution will no longer rely on human or administration, that risk of being corrupt or dishonest, but instead rely on the smart contract itself.
3. Compensation System and Network Effect Driver for Everyone in The Ecosystem
Last, but not least, as i have mention above : users that agree to the data acquisition will get compensated with SWIPE Token.
SWIPE Token can be bought and sold into fiat currency, such as dollar, euro, rupiah, etc in the existing cryptocurrency exchange.
More or less like we are trading Bitcoin and Ethereum nowadays.
The Token can also be use for in-apps utility such as premium feature for certain Application that partnering with SWIPE.
SWIPE as a global project, can not be having any geographical boundaries for anyone that got involved in the ecosystem : the apps developer, apps user, and data buyer.
So it only make sense that SWIPE Economy run in a CryptoCurrency rather than fiat money, because sending fiat money from one country to another can take to 1–3 days for settlement, while CryptoCurrency such as SWIPE Token can be settled within 5–10 mins.
Also Early Adopters on SWIPE Ecosystem, that is the Apps Developer and Users, must be compensated with the potential uprising in the SWIPE Token value.
Because if not, then the incentive to become SWIPE early adopters will not be strong enough, because the monetary upside is not compelling for them, if the Network is actually getting bigger.
Just imagine becoming early miners of Ethereum Network, back when Ethereum is priced at $1 / ETH, it’s economically not profitable to mine Ethereum, but because they believe that Ethereum Network will go big someday, which gonna drive the price up significantly, they keep on going.
And when Ethereum price go to the moon (as Crypto Investors like to call it), the early miners is the ones that got rewarded the most.
What will drive SWIPE Token Price up?
The numbers of Participating parties inside the Ecosystem.
When the numbers of Apps Developer inside the Ecosystem is rising, it will bring the Data Buyer automatically into the Ecosystem, where they need the SWIPE Token to do Data Acquisition, this demand will in turn affecting price of SWIPE Token, because numbers of Token that released into the Ecosystem is fixed (you can read it on their whitepaper)
Law of Economics : Supply and Demand will drive the price up, as long as SWIPE able to attract more and more Apps Developer into the Network, which will bring more and more Apps User, and in the end will bring more and more Data Buyer with the needs of buying data using SWIPE Token.
— — — —
Sixth
Lesson Learned.
Not every project is required to apply Blockchain Technology as the part of their solution.
Blockchain, as in right now, is basically a slow and expensive database (Vitalik Buterin words’ not me)
Slow in a sense that up until now the maximum transaction capacity inside Ethereum Network is only 4–6 transaction (but i think it will improve significantly when Casper and Sharding get implemented)
Expensive in a sense that every transaction inside Ethereum Network required certain transaction cost (we have Plasma as a second layer solution to this problem)
But, for numbers of use case like Data Monetization, then Blockchain can be used, because the ones that uses the services doesn’t expect the high speed performance on their transaction (on this case selling their data to Data Buyer)
What is important for them is assurance that this Database Ledger is Decentralized, in a sense that no authority have control over their data.
What is also important to them is a guarantee that they will be notify and fairly compensated if there is a entity look to buy their data.
For that kind of use case, Blockchain can be a solution.
So let’s stop creating a project that only repeating “Blockchain” mantra over and over on the whitepaper without having any strong reasoning on why exactly you need Blockchain and Cryptocurrency to solve the problem.
Let’s think deeper whether a problem that we try to solve is actually need Blockchain as the Technology Infrastructure, or Centralized Database Infrastructure is more suitable in solving the problem.
— — — —
That’s all folks!
Hopefully this essay will give you a closer look into what is SWIPE.
And if you are thinking of building the next Decentralized Applications, hopefully this essay will bring you more clarity.
Thanks and have a nice day! :D
