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.
I was recently asked by Fast Company magazine along with a number of other startup execs to identify one app that I used daily that most people didn’t know. My answer was the Quartz news app.
Quartz allows its community of members to identify articles to be featured. Some are articles from Quartz, but the majority are from other media sites. Members are encouraged to comment directly on the substance of the articles and not react to other comments. In fact, you can’t even reply directly to comments.
The depth and substance of the community is everything Twitter should have been – without the bots, Russians and fake news. And you get to post your best thinking along with the likes of Richard Branson, Arianna Huffington and Ryan Hoover. And you’ll learn just how wickedly smart and clever Roger McNamee (@moonalice) is and why he is regularly the most liked commentator.
I’d encourage you to download the app and try it out. Somewhere inside this newcomer to news is the answer to how we get our news and debate in the public commons. There might even be a business model that could make news profitable again.
California Governor Gavin Newsom called for a “Digital Dividend” in his State of the State address this past week. He didn’t offer specifics, saying only that he is instructing his staff to study the idea. But the point was as clear as the Silicon Valley sky – he wants California citizens to participate in the trillions of dollars of wealth being created by companies from their personal data.
I was caught by surprise by the proposal and Newsom’s use of the term Digital Dividend, but not by the idea itself. I’ve been working on this concept for a decade, and have been recently calling it Universal Basic Data Income – the part of UBI derived from one’s own data. I’m currently working on a startup called UBDI that is trying to prove that people can ethically and sustainably earn hundreds and then thousands of dollars a year from their data (built on the digi.me Private Sharing platform).
I love the concept of a Digital Dividend, and the precedents it evokes such as the oil dividend in Alaska. Gov. Newsom’s proposal is a critical development in this movement. No US political leader of his magnitude, much less the leader of the state with the most wealth creation from personal data, has made such a bold declaration.
I spoke to AdWeek about his proposal this week and why this is different from all the other calls for better privacy laws. The idea was so unexpected that the usual industry advocates like the US Chamber of Commerce and the Internet Association haven’t even responded. I’m not sure they know what to make of the idea. Maybe that’s a good thing. I’d hate to have to explain why people should keep being cut out of their fair share of the mega profits derived from the data they produce.
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.
This week’s Time magazine cover feature on privacy, data and Facebook marks another milestone on the path to a new, fairer more transparent model. Marc Benioff, founder of Salesforce and new owner of Time, wasted no time in shining a light on this critical subject.
The column by Tim Cook is the biggest line drawn in the sand yet by Cook and Apple, who are declaring war on the surveillance economy that online advertising requires. It also strikes at the heart of two of their biggest competitors – Facebook and Google.
In addition to supporting a call for new privacy laws, Cook writes:
“But laws alone aren’t enough to ensure that individuals can make use of their privacy rights. We also need to give people tools that they can use to take action.”
Roger McNamee, an early investor in Facebook and mentor to Mark Zuckerberg, writes an even more damning piece about his difficult decision to call out Facebook executives and ask for them to be held accountable. The article (and his book Zucked) reads like a Silicon Valley version of Frankenstein.
“When I sent that email to Zuck and Sheryl, I assumed that Facebook was a victim. What I learned in the months that followed–about the 2016 election, about the spread of Brexit lies, about data on users being sold to other groups–shocked and disappointed me. It took me a very long time to accept that success had blinded Zuck and Sheryl to the consequences of their actions.”
If Acxiom getting religion on privacy sounds unlikely to you, you aren’t alone. In fact, I’m deeply concerned about companies like them trying to co-opt potential privacy legislation in the United States to both protect themselves and to block innovative privacy models like ours at digi.me, as I discussed with AdWeek just yesterday.
I have personally asked Acxiom many times, including directly to their board of directors, to make a downloadable copy of their digital profile data available to consumers. GDPR in Europe now requires it, and it’s called data portability. The answer has always been no.
If Acxiom wants to prove they are on the digital road to Damascus, they should make their data available to consumers. Every consumer could download a complete, reusable copy of the data Acxiom has about them – thousands of detailed data points.
At digi.me, we have the proven tools to let consumers download exactly this kind of data securely and privately – and to use however they choose (we don’t touch, hold or see data). We’ll do all the work, and won’t even charge for it.
Acxiom, it’s never been easier to prove that you’ve changed.
The following Digital Bill of Rights was crowdsourced at SXSW in Austin, TX on March 11, 2012 at a session I led with Anne Bezancon (then CEO of Placecast, now part of Ericsson) called “We the People: Creating a Consumer’s Bill of Rights.” It seems like a timely reminder that many of the current issues we are struggling with in terms of privacy, transparency and control of data are far from new, and that the issues they touch in our lives are as fundamental and transcendent as those covered in the original Bill of Rights.
The packed session at SXSW included participants ranging from privacy experts to advertising and internet executives. Despite the different viewpoints, we concluded that we could not rely on companies or governments to determine these right for us any more than the Founding Fathers relied on King George or the British East India Company to do so on their behalf. The attempt to make them go viral online fell short…at least to date.
The group also believed the rights to be so interconnected that they needed to be considered together – each reinforcing and providing context for the other. The rights do not cover each and every right or code of conduct that we believed should exist, but were designed to be a minimum set of rights that would create a the basis for a safer, fairer and more innovative digital world.
Finally, like all rights, we anticipated that there would be occasions and contexts where such rights might be limited or waived. But we asked ourselves in selecting each of them if we wanted a world where such rights did not exist and were not the default: Where there was no right to transparency, no right to privacy, no right to choice and control, etc.? Our answer was unequivocally no.
Digital Bill of Rights
March 11, 2012 – Austin, TX
This Digital Bill of Rights applies to the sanctity of the digital self
The digital self should be afforded equal standing as the physical self before the law and society
1. Right to transparency
I have the right to know who collects, uses, shares, or monetizes my data and how they do so
I have the right to know how my data is protected and secured
I have the right to know the value of my data
2. Right to privacy
I have the right to privacy by default
3. Right to choice and control
I have the right to give and withdraw permission to collect, use, share or monetize my data
I have the right to view, access, correct, edit, verify, export and delete my data
I have the right to own and/or use freely the “golden copy” of my data
I have the right to buy the product or app and not “be the product”
4. Right to safety
I have the right to expect my data to be stored and transported securely
5. Right to identity
I have the right to have different personas in context
I have the right to anonymity
6. Right to minimal use
I have the right to have my data collected, used, shared or monetized only for the specified purpose and context
I have the right to be forgotten after my data has served its purpose
In our journey at digi.me to create compelling reasons and tools for consumers to take control of their data, the new TFP app stands apart. The app, now available for iOS in the App Store and Android in Google Play, allows you to privately scan a lifetime of social posts to find potentially vulgar or objectionable content.
I’m not sure what I can add to this great write up by the Daily Mirror’s Ian Morris, particularly if you are looking for a job – or trying to keep one you already have (including, say, hosting the Oscars):
“Christmas party season is stalking you like a lion pursues an antelope, waiting for you to have one too many glasses of vino and vomit up the veritas all over social media.
But a new app promises to wipe up your social media mess, and might help you stay gainfully employed into 2019. Called “That F***ing Post” it hunts through your accounts looking for things you shouldn’t have said.
The app says it can go back to the start of many social media accounts, perhaps tracking down faux pas from years ago. Handy if you wrote things during the throws of youthful indiscretion but now want a paying job.”
The app is a must for just about anyone who’s spent more than 10 minutes posting on social media, but especially for younger people who grew up posting their every thought (or bad idea).
TFP, which stands for That F’ing Post, is built with digi.me’s private sharing technology, and scans posts and comments from Facebook, Instagram, Twitter, and Pinterest. A simple work flow lets you swipe left to ignore a post or swipe right if you’d like to go back and edit or delete.
The app combined 8 libraries of bad terms and phrases to enable its machine learning, which happens inside the app without ever going to external servers (true edge processing).
That said, it has a lot to learn. Lots of words like “sex” or “shoot” have plenty of fine uses, while other words and phrases escape its digital net. We are encouraging users to send ideas for new word and phrases to add to the library by using #TFP. Check it out and let me know what you think!