P2: The problem with the way apps monetize data and how SWIPE intends to solve it
PART 2/3: If you are an app user,app developer or data buyer, SWIPE brings good news! We are creating a new way for app data to be monetized that is transparent, fair and gives ownership of data back to users.
Before we head to the exciting part where we reveal how SWIPE intends to reinvent the way app data is monetized, we have to explore what is wrong with the current process and identify the pain points.
*All data mentioned in this article refers to anonymized and aggregated data which produces insights and statistics and not personal data.
The process starts with the app developers and why they have to work with a centralized data intermediary. Data is extremely important in our digital economy but in order for it to be valuable, it has to tell a complete story and it has to be high in volume. User profile data within a single app is often incomplete and this makes the data non-actionable with low monetization value.
Data buyers are seldom interested in buying data from a single app as they only have data relating to one aspect of a user’s preference. If data buyers only had the interest data of their users but not their transaction data, they will know what their users like but not how much they are willing to spend, making them unable to decide on their pricing strategies. This is why having complete user profile data is extremely valuable as it can direct business and marketing decisions.
This results in the need for app developers to work with a centralized data intermediary that buys data from various apps,mashes them up and matches them together based on device ID to create valuable data and monetize it to data buyers.
So far things don’t look that bad. However, with closer inspection, you will realize this process totally cuts out the users, lack fair revenue distribution to app developers and data buyers are not able to audit the origins and accuracy of the data that was bought.
This is how the current process looks like. It starts from us, the app users. We contribute data to the apps we use by interacting with them and the data collected will then be monetized to a centralized data intermediary which then packages the data to be sold to data buyers based on their requirements.
When we analyzed this process, we asked ourselves 3 key questions:
1) What if app developers could work together to create valuable data that can be monetized directly to data buyers instead of relying on a 3rd party?
2) How can users gain ownership and more privacy over their data and be part of the monetization process?
3) How can we give data buyers a way to audit the data they bought so they can be reassured of it’s quality and integrity?
To solve all of the above questions, SWIPE decided to harness blockchain technology to create a network of app developers and users. They will be connected via the SWIPE Software Development Kit (SDK)which can be easily integrated by app developers and makes onboarding of new users more scalable.
The SDK aims to serve 2 main functions. It will allow app developers and their users to opt in to join the monetization process by being part of the network and it will also provide a suite of in app marketing tools that will help app developers to increase their app engagement and user retention.
As part of the SWIPE network, all data collected by app developers are channeled into an analytics engine which processes the data and packages it to be monetized directly to the data buyers in a transparent way via our decentralized data marketplace. This creates a fairer distribution of revenue as app developers are rewarded every time their data is traded.
Users now have the chance to join the data monetization process using our privacy and data sharing protocol. This protocol will empower users with the choice of choosing whether to trade their data for rewards or to restrict the network from using their data. This is executed via a smart contract that governs data requests and rewards distribution.
And as the whole process is transparent, data buyers will be able to trace back the data they have acquired to it’s source, giving them the confidence about its accuracy and origins. This is in stark contrast to the previous process whereby data buyers have to trust that the centralized data intermediary provided them with truthful and honest data as they had no way of auditing the data.
SWIPE is creating a better data marketplace that benefits everyone involved. Instead of just the centralized intermediary earning the bulk of the profits, imagine this new process where thousands of apps are connected to millions of users in one huge network, earning rewards together every time data is traded.
Who’s funds are used to reward users? What is SWIPE’s token economics and how will SWIPE tokens gain value? We will explore those questions in detail in PART 3! Stay tuned and thank you for reading!
To find out more about SWIPE, check out our website and follow us on telegram and social media!
Telegram: https://t.me/swipecrypto
Medium: https://medium.com/swipecrypto
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Reddit: https://www.reddit.com/r/swipecrypto
