Data is the new oil. You've probably heard this saying more than once.
So, why are we giving it away for free?
Facebook currently has a market capitalisation of 374 billion USD simply for having the largest database of personal information (or CRM system, if you prefer). Every day, we are feeding it with more and more data, information and content, and giving it away for free.
I have spoken with several entrepreneurs in the blockchain ecosystem, and the idea of users being remunerated for providing data to companies in the future is a topic that regularly comes up.
For example, if I were to use an internet-connected device to measure my pulse or blood pressure and a company was interested in the information it provided, I would only share it if I received something in return. The same applies to weather data from my phone or personal weather station, photos with a location tag, data from my 'Internet of Things' devices and information from my car. The list is almost endless.
However, two essential elements are currently missing to make this a reality:
- User awareness of the value of their data, information and the content they provide
- A cheap, fast, scalable and user-friendly internet-based payment system that also works for very small transactions.
The first point may not be easy to achieve at first, but I believe that if one company starts paying for data, it could quickly become the norm and others would follow suit.
The second may happen sooner than we think if you believe the blockchain evangelists. I won't discuss that topic further here, since it has already been covered extensively in countless other blogs. Suffice to say, I agree that such a system will appear before too long.
I do not believe that companies would be unwilling to pay for one of their most essential resources – information. They certainly have a better understanding of its value than the average consumer.
Imagine the paradigm shift this would represent. Every piece of software or device connected to the internet that generates information would essentially have a 'button' to release that data to someone willing to pay for it. If there is more than one interested party, there could even be an auction scenario. Alternatively, it could be automated if the owner doesn't mind who buys the information. If you have a social media account, you could earn money based on the content you provide. This content could be rated using artificial intelligence, and the higher the score, the more you would be paid. Each piece of information would be valued and traded accordingly.
On the other hand, consuming information and content would obviously come with a price tag more often. Personally, I have never understood why certain content on the internet should be free when, in the business world – especially in finance – qualified information is extremely expensive (e.g. Bloomberg and Reuters).
So, yes, ultimately, consumers may not be better off, as the proceeds from the sale of data and information will offset the cost of the content consumed. However, the big difference is that those who produce the data, information and content will receive fair compensation, and those who monetise it will pay for the use of these resources.
If data really is the new oil, it should be treated and traded as such.
Any thoughts?