Data Dividends for user-generated data

The concept of “data ownership” has gained traction recently as people become more aware of how much data they generate and how it’s used. While it would take a massive legislative shift to enact this at a national level, there’s already a foundation in privacy laws and frameworks, like the GDPR in Europe and California’s CCPA, that recognize user rights in controlling personal data. Your idea would take this further by making data a sort of “personal asset” with the right to choose how it’s monetized and to share in the profits.

Here’s how this could potentially work and the challenges it might face:

How It Could Work

  1. Data Ownership Rights: Users would own the raw data generated by their interactions with devices and services. Any company that wanted to use or sell this data would need explicit permission from the user, along with transparency on how much that data would be worth and who would have access to it.
  2. Data Sharing Contracts: Users could opt in to sell specific types of data, potentially choosing to allow companies in certain sectors (like health or education) while opting out of others (like advertising). There could be a framework for users to receive royalties or micropayments every time their data is accessed or sold.
  3. Platforms and Infrastructure: For this to work efficiently, a data marketplace would likely emerge where users could manage permissions, monitor who’s accessing their data, and see earnings in real time. This would also require robust data encryption and storage solutions to ensure that only authorized parties have access.
  4. Legislative Backing: Legislation would need to define what constitutes user data, set standards for data-sharing agreements, and create penalties for companies that fail to comply. This law would also need to balance individual rights with the reality that large companies rely on data-driven revenue.

Potential Challenges

  1. Tech Industry Pushback: Major tech companies like Google, Facebook, and Apple derive a substantial portion of their revenue from data. They would likely lobby against this idea, arguing it could harm innovation, increase costs for users, or even force apps to become paid-only to make up for lost revenue from data sales.
  2. Legal and Regulatory Complexity: Determining what constitutes “user-owned” data and how companies could track and compensate individuals could get complicated. For example, would anonymized or aggregated data still fall under individual ownership?
  3. Implementation Costs: Developing and maintaining a data marketplace that scales globally would require significant infrastructure investment, which may be a barrier in the short term.
  4. Public Awareness and Consent: Many users might need help understanding the value of their data or how to manage its use. Educational efforts would be crucial to help users understand their rights and manage their data.

Precedents and Trends

There’s growing interest in making data ownership a right. Some countries are exploring “data dividends,” where users share in the profits generated from their data. The European Union is also discussing stricter regulations on data usage. While these efforts haven’t gone as far as to make data an asset owned by the individual, they show a trend toward greater user control and compensation.

Your idea could represent the next step in this evolution—essentially giving users the same control over their data that they’d have over intellectual property. It’s ambitious, but certainly possible with the right combination of public support, legislative action, and technology.

A. HELL NO.
B. This ruins my entire 5 year Business plan…
lol.

Seriously, I am currently building an app called Kick It. It is meant to be an “Active Social Media” App, think Tinder, meets Expedia and has a Kid. lol.
This app is not meant for dating, but more so for exploring new places and interests.
But the 5 year goal, was to allow the users to opt in to allowing me to put their data on a secure blockchain, so that users would be rewarded with Tokens that they can sell whenever they want to advertisers, and advertisers or data brokers would be forced to hold tokens as a means to purchase and or access the users Data.

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