After a whirlwind week presenting UBDI at the Finovate conference in New York and at the MyData conference in Helsinki, I didn’t even notice the Slack message saying that the “NPR story was out.” Several hours later I sat down to listen to the NPR Marketplace Tech interview with my co-founder, Dana Budzyn. She was also in Helsinki and hadn’t even listened to it yet.
In a world of sound bites and 280 character tweets, the in-depth discussion between Dana and host Molly Wood was completely unexpected. We couldn’t have written a better lead in:
“Universal Basic Data Income. It’s not just an idea. There’s an app for that.”
NPR Marketplace Tech host Molly Wood
I spoke today at MyData on owning and monetizing data, the leading personal data and privacy conference in Europe. There is still so much misunderstanding and distrust around the idea. That’s not surprising given how badly people and their data have been treated in the digital world.
Hats off to NPR and Molly Wood for such a thoughtful and balanced story. We only wish our iOS app were approved by Apple for people to sign up after hearing the story. We’ll post a link soon when it’s available.
UBDI announced a great group of investors today in it’s $825k pre-seed round, which was led by DG Lab Fund II (a JV in Tokyo and San Francisco between Digital Garage and Daiwa Securities Group) an HU Investments (of New York, London and India). PurposeBuilt Ventures of San Francis also participated. You can read the press announcement here and their post on the round here.
As I recently wrote, the level of funding around privacy-preserving data empowerment businesses is paltry compared to the massive problems they help address – data privacy, security, trust, transparency, equitable participation in profits, etc. UBDI might be the first business built on a privacy by design data platform (digi.me) that has a simple, valuable enough value proposition for both consumers (monetize data at more than $1k annually in a few hours time) and businesses (improve quantitative and qualitative research results and make regulators happy) that I’ve seen.
It still takes about 10 minutes to set up, including downloading the separate digi.me app to protect and store the raw data, and the exact price points to get people to participate in studies needs to be worked out, but UBDI has an easy to use app that motivated consumers will have little problem navigating. And researchers of all kinds – market research, financial research, health research, academic research – will be blown away by what they find. Stay tuned for more announcements on the app coming out of beta.
One of my favorite apps that has come out of our digi.me hackathons is TFP (as in That F’ing Post). We are incubating it now inside the Social Safe Incubator, and have a small team from the University of Michigan working on it with us. You can check it out at: TFPapp.com
Like the name suggests, TFP helps flag social media posts of yours that might be considered vulgar or offensive. It uses a library of over 3,000 words and phrases that get matched privately against your entire history of social posts from Facebook, Instagram, Twitter, Pinterest and Flickr. You can then edit or delete any posts you find concerning, especially those from your middle school years before you became the enlightened person you are now.
Understanding our digital footprint is essential, especially content that we created ourselves. TFP is an important first step in that effort. I look forward to hearing what you think.
I was invited by the University of Michigan’s School of Engineering and Center for Entrepreneurship to give a “Ted Talk” on my entrepreneurial journey and how I came to be so passionate about empowering people with their data, privacy and identity.
I wrote one of my first blog posts in 2010 about the origins of my thinking when I was a student around concerns of “being defined by others,” so I really enjoyed this special chance to share my story. I’ve never been more convinced that our data-driven future depends on each of us having agency over our data and identity.
Congress confronted privacy and personal data rights in a pair of hearings last week. This week, Mark Zuckerberg announced a “privacy pivot” at Facebook, yet failed to propose a single tangible reform of its core business.
Zuckerberg’s privacy manifesto illustrates the core problem. Big tech companies such as Facebook have no real interest in changing their practices. Their entire business model is based on owning and exploiting personal data to manipulate people and sell advertising. They’ll defend that at all costs.
The ongoing series of privacy scandals and last year’s high profile hearings led the Silicon Valley giants, including Facebook, to hire a small army of lobbyists. Although there has been no new legislation yet, data privacy reform is in the air, and the jockeying behind the scenes is telling.
Facebook’s position and the overall surveillance-based business model has become impossible to defend. With few straightforward options, the lobbyists for the social network and other tech behemoths are now trying to manufacture a partisan crack in what is clearly a bipartisan issue with the hope that they can co-opt the regulatory process as a result.
Even more troubling than watered-down privacy legislation that creates an appearance of accountability and enforcement is the possibility that regulations will create significant new compliance costs. This would allow these data oligopolies to further entrench their dominance against startups and new entrants to the market. Facebook can simply absorb the new costs, while smaller companies and startups, many of whom are starting to emerge with innovative tools to empower people with their data, would be boxed out.
The other focal point of their strategy is to deny state-level activism and innovation. This strategy started last September, when the U.S. Chamber of Commerce and the Internet Association released ten new “privacy principles.” The very first of these principles, which has been echoed nonstop since, was to call for “a single federal privacy law.” While it’s reasonable to demand a unified national approach to privacy, it is far too early to defang state-based privacy laws such as the one in California, which the industry fought before losing handily in a public referendum.
California has, in fact, been a national leader on privacy issues, and their popular law goes a long way toward returning control to consumers. It takes the practices of big companies out of the shadows, which is the first step toward empowerment. It isn’t perfect, but it marked an important and awakened many to the abuses and dangers of the current “click here so we can own your data” model.
Under the newly elected Democratic Gov. Gavin Newsom, California appears poised to continue to lead on this issue. I don’t think anyone has fully processed the significance of Newsom’s calls for a “digital dividend” in his State of the State address earlier this month. This was one of the first real acknowledgments from a major public figure that trillions of dollars in wealth is being created by companies from users’ personal data, and that those same users have a right to a piece of that pie and to ensure that their data is being used for and not against them.
Of course companies that are making trillions of dollars off of private data are going to resist efforts to let others wrangle their cash cows. But the next time Zuckerberg or another Silicon Valley executive is hauled before Congress to defend data practices, which will likely happen in the coming months, we need to make sure we don’t fall for their shell game.
It’s long past time for power over data to be put back in the hands of the users to whom it belongs. I hope that Congress uses that principle as their starting point and their end goal. We need real action, not empty Facebook posts.
Shane Green is CEO of the private data sharing company digi.me and co-founder of UBDI, a consumer-controlled market research and data monetization community. He blogs at shanegreen.org and you can follow him on Twitter @shanegreen.
Every week brings another sign that consumers are coming around to the idea of making money off of their own data. USA Today’s Marco della Cava went in depth on the issue in a feature story today on California Governor Gavin Newsom’s call for a Digital Dividend, which you can read here.
The article commissioned original research showing that 45% of Californians already support getting “a share of profits from company use of user data.” Fully 26% were undecided and probably needed more specifics before deciding. And it’s fair to assume the 28% against the idea assumed the worst given current industry practices – that their private data would be sold to the highest bidder (which is not the case).
That’s an overwhelmingly positive response out of the gate for the California governor. The article also covers both UBDI and digi.me and the work we are doing to help make this possible. It’s an exciting time to be working on such a game changing problem.
The time is finally right for people to ethically monetize their own data
In 2011, I called data “a new form of currency” in an interview with Julia Angwin and Emily Steel of The Wall Street Journal. I strongly believed that people had a right to participate in the economics of the data they produced, perhaps even the lion’s share.
I was building the personal data platform Personal at the time (now part of digi.me – a partner of UBDI) and found the response by consumers and the media overwhelmingly positive. If data was indeed the new oil, what if we were each sitting on our own reservoir that just needed to be tapped?
I was not surprised that Silicon Valley insiders scoffed at the idea. In addition to threatening their business model – Facebook was in the process of filing for their IPO based almost entirely on exploiting the personal data they captured – they argued that data was not valuable at an individual level, which was largely true then. Others derided individuals themselves, saying that they could never understand the concept of data – or manage it effectively if they did.
There was an even louder chorus of detractors who said privacy was dead. One brand-name VC backing Facebook told me quite bluntly “it’s just a matter of time for dinosaurs like you to die off.”
Consumer and privacy groups were often just as cynical. One article in direct response to me even said that selling your own data was “like selling body parts.” I’ve heard similar reactions just this week from a few alarmists in response to initial coverage of UBDI.
I understand the concerns, but they are dead wrong. Nothing is more important to our future than taking control over the economics of the data we produce. After a decade working on the problem, I think we’ve finally cracked the code.
UBDI is a startup building a new community of individuals, developers and companies who are committed to working together to ethically monetize data. In the first phase, UBDI has a bulls-eye on the $50 billion market research industry, where aggregated insights and trends are most important – not data about individual people. Other industries will follow, making the addressable market many times larger – not counting the market cap of the companies based on that data.
Similar to the ideas around Universal Basic Income, we believe that individuals will be able to receive hundreds and potentially thousands of dollars annually from ethically monetizing the data they produce – what we call Universal Basic Data Income.
The company is creating an asset- and revenue-backed digital currency, called UBDI, that has the potential not just to let individuals participate in their share of the community profits each year, but also the future value of the community’s data – kind of like an equity.
In short, UBDI members are coming after both the revenue and the capitalized value of their data.
Here’s our announcement this week, as well as a great initial piece by the Daily Mail. And here’s a short video of how it will work when UBDI’s consumer app launches in the spring (please join the waitlist now to earn 1,000 bonus tokens and to show the market research community your willingness to participate)
I would add that I’m blown away by my co-founders, Dana Budzyn, who is CEO, and Mark Kilaghbian, Chief Product Officer. They have rich personal histories that led them to decide to start UBDI.
Dana spoke about how a health condition led her on this journey in a powerful TEDx video that I’ve included below. Mark hosts the most popular crypto podcast on iTunes, called Cryptoconomy, which resulted in part from being being a successful early crypto trader in his teens and in college and then being a victim of the Mt. Gox hack. They are joined by CTO Harun Smkrovic, a rock star developer who helped build Personal and, more recently, a popular crypto wallet.
We are also lucky to be partnered with digi.me, where I still run North American operations and help oversee the development of our app and startup ecosystem. Many thanks to digi.me founder Julian Ranger, CEO Rory Donnelly and the entire digi.me team. Tarik Kurspahic, EVP of Technology at digi.me, also serves on the advisory board of UBDI. UBDI simply wouldn’t be possible without digi.me’s private sharing technology.
It’s worth noting that we will soon be launching a major initiative for developers who want to build apps on UBDI – or integrate their existing apps. Apps can be both free for users and profitable without having to exploit data for advertising. More to come on that shortly.
Finally, we are grateful to our other advisers, including Georgetown Law professor Itai Grinberg, who is figuring out how taxes will work in UBDI, David Nayer, COO of crypto ride sharing company Arcade City, and the many hundreds of people who have advised us as we set out to build this community recently and over the past decade.
All it takes is 1 million people to sign up to prove that we can change the business model of the internet! Please sign up for our waitlist now at ubdi.co.