Introducing Personal Data Exchanges & the Personal Data Economy
By: Michael Haupt
Tags: Personal Data, Internet Of Me, Privacy, P D E, Big Data

Companies like Facebook and Google already make billions because they know everything about us via our online habits. What if we could take a cut? What if we could own and sell our data directly?

Our personal data is an economic asset generated by a combination of our identity (demographics), our behaviour (psychographics— our interests, attitudes, and opinions) and our purchases (the lifestyle we lead based on what we vote for with our hard-earned income).

This asset is commonly traded for perceived higher value services and products. Examples are:

Being able to find information quickly online (Google);

Being able to share personal memories with friends and families (Facebook);

Being able to network with business colleagues and prospects (LinkedIn);

Being able to pay for purchases without carrying cash (Visa, MasterCard, et al).

If this hot-potato topic of data ownership and ‘privacy’ is new to you, here’s a quick primer on who owns your data, courtesy of Hub-of-All-Things:

Bottom line:

Platforms often know more about us than we know about us.

As bleak as this may sound, there is a shift underway:

From data owned, controlled and sold by companies

data owned, controlled and sold by companies To data owned, controlled and sold by the individuals who generate the data.

Here’s what Giovanni Buttarelli, the European Data Protection Supervisor, has said about personal data:

“Our online lives currently operate in a provider-centric system, where privacy policies tend to serve the interests of the provider or of a third party, rather than the individual. Using the data they collect, advertising networks, social network providers and other corporate actors are able to build increasingly complete individual profiles. This makes it difficult for individuals to exercise their rights or manage their personal data online. A more human-centric approach is needed, which empowers individuals to control how their personal data is collected and shared.” — Giovanni Buttarelli, European Data Protection Supervisor, October 2016

The more human-centric approach Buttarelli refers to is currently being birthed, thanks to Personal Data Exchanges.

But what exactly is a Personal Data Exchange?

“A Personal Data Exchange (PDE) is a technology platform that enables individuals to own their personal data, manage their privacy and optionally monetise some or all of their digital DNA. PDE’s power the rapidly-emerging Personal Data Economy, where users — rather than platforms — benefit from User Generated Content and Data.”

Essentially, a PDE shifts control of personal data from the platform to the person. Its about letting individuals take ownership of their information so they can share it on their terms.

Contrary to popular belief, consumers (especially the younger generation) are no longer concerned about preserving their privacy. They are instead thinking about who has, and who should profit from their data, and how they can take back control, or even use their personal data to make life easier via a PDE. Makers, founders, disruptors and innovators are meeting this need by building platforms that empower users to control their data.

Examples of Personal Data Exchanges

I’ve been involved in the PDE space since 2013 and I’ve advised and consulted with 5 startups building products that can be described as PDE’s (an as-yet unnamed industry). Based on the interviews and research my team and I have conducted, here is a list of current Personal Data Exchanges. If you know of any others, please let me know.

In addition to the platforms mentioned, there is an initiative underway called the MyData declaration.

Who’s missing?

Please let me know of any others by posting a response.

Why is the rise of PDE’s important anyway?

Society is undergoing a shift from command and control to collaboration and co-opetition. PDE’s are a natural next step in humanity’s development. There is a rather vigorous debate going on around Universal Basic Income, and I see PDE’s potentially playing a role in determining what every individual receives, but that is a topic for another day.