A simple definition of data is information that has been translated into an effective and meaningful version by way of progression or computation. The term “raw data” generally refers to information in its most basic electronic medium in a binary form.
The process of using information to obtain a tangible financial advantage or earning is known as Data Monetization. The huge adoption of Internet and gadgets over the past decade; the opportunity to monetize data has contributed to the surge in the emergence of creating digital information. All documents, audio, and video data, as well as logs and Internet activity archives, are all processed together to convert the data into actionable information.
This makes data by far the most valuable asset going forward since has now become the fundamental basis for any institution to make informed choices and implement any radical or marginal change in their company or industry. As per a report by MarketsandMarkets, the Data Monetization market size is expected to grow from USD 2.9 billion in 2022 to USD 7.3 billion by 2027, at a CAGR of 19.5%.
The Value of Your Data
Data monetisation is one of the most effective instruments that new-age businesses use to maximise customer experience and fine-tune their promotional strategies. Effective data collection and analysis by organisations will enable them to direct scarce resources where they are most needed, and the data can be further utilised to anticipate and meet customer needs.
Data monetization is usually done through two options:
Direct Data Monetization – this process involves companies offering third party or consumer data.
Indirect Data Monetization – this process involves utilising the data to developing or boosting operational business.
DataMonetization also provides companies with a competitive advantage and helps in streamlining their operations, further developing strategic partnerships and create new revenue streams. As many businesses seek to grow or improve their external and internal assets, data marketplaces are growing seamlessly in order to match consumers and sellers.
While technology is always ahead of policy, currently there is no legislation that stops monetization of documentation. At these times, the need felt to protect our own data is high and this choice is available today.
Securing Data through a distributed network
Securing data through a distributed network or otherwise known as data decentralization is a concept that focuses on consensual data trade i.e., the buying and selling of data is done by the awareness of both the parties with consent. With the use of Blockchain Technology, the data is stored in these data marketplaces, making sure that no one has access to the data or can alter it without the owner’s permission.
Decentralized Data Marketplaces address Data Monetization and challenges faced such as data privacy by facilitating companies and consumers to advertise private data while maintaining confidentiality, anonymity, accountability, and access control.
Data storage is decentralised, and without any single party in control. At the origin, it is secure and encoded. This leads to the decentralized data marketplaces operate on a secure, Blockchain network, offering customers comprehensive control over their own data.
This process works the two entities – the data requester and the data provider.
- Data Requester – Requesters can acquire significant exposure to genuine data that they are focused in, data that can be affirmed employing blockchain.
- Data Provider – Providers could perhaps use this procedure to communicate their insight and points of view in a secure and sound manner, while also presiding control over where the data is exchanged.
This process will help regain privacy and security of personal information if a decentralised data marketplace is incorporated in conformance with prevailing best practices. This will also create a healthy data exchange environment that will be mutually advantageous and assist individuals in data autonomy.
Monetization of verifiable data assets governed by De-Centralised societies is highly likely to be the future and utilizing Non-Transferrable Fungible Assets like SBTs (SoulBound tokens) to create a fair and transparent environment for consensual data exchange is critical. SBTs will contribute to building the reputation of data providers and ascertaining the quality of data they provide.
This demonstrates how data monetization will be integrated into processes that businesses will utilise it on a regular basis. However, with decentralized data marketplaces, you can choose whoever you want to share your data with and who will use it. The freedom of choosing will stay with you.
The article has been written by Madhur Prabhakar, CEO and Founder, EQ8 Network