Loycha - Online ownership of Data will belong to users

Online ownership of Data will belong to customers

Only customers who store data on the blockchain can access them through encryption keys and partners will be able to access the data through smart contracts and only on the level provided by customers.

Loycha - Online ownership of Data will belong to users Illustration

Every second of everyday, billions of users are generating terabytes of data doing different activities like shopping, buying travel tickets, renting cars, eating in restaurants, staying in hotels, buying services, etc. Most of the companies claim that users data are personal and belong only to them and they have full ownership on them.However, users have little or no ownership over the digital data that are created. Loyalty companies and others use these data to monetize their services.

Here the problem resides on the centralized architecture that is being used. Users have to trust the big companies such as Lufthansa Airlines or Facebook, or any other company. In this architecture data stays in single company and users have to rely to these companies for data storing and their security. But companies often use these data for other business purposes, often without consent. If the company decides to close down user’s account all user’s data is gone. Or if a user wants to close the account and transfer to other company, they won’t be able to take their data away with them. So the new loyalty company will have no information about their new customer.

For example: Bob wants to move from Lufthansa to Turkish Airlines. He is a long term user of Lufthansa loyalty miles and more program and he has become Hon Circle Member (which is the highest tier in Lufthansa). Than when he moves to Turkish Airlines, he will start collecting miles and everything again from scratch. So wouldn't be better if he can carry all his activities so Turkish Airlines can know that Bob is a frequent flyer and will upgrade him automatically to Elite Plus (which is Turkish Airlines highest tier), and give benefits accordingly? Or wouldn’t be better if the users decides to share some of his data and in response win money for that?

So we come here with the solution using blockchain technology which gives the ownership of data back to users. Shortly, blockchain is a decentralized database where data is stored across several unrelated nodes. There is not any possibility that any node can have control over the users data. Transactions that are stored in the ledger are verifiable and are stored permanently there. So independent of partner where the users has made the activity,only users who store data on the blockchain can access them through encryption keys. Also partners will be able to access the data through smart contracts and only on the level provided by users.

So, because the data resides on blockchain nodes on open ledger (not in single company), the data security is provided automatically and users will have full control of their data. They will be able to block or allow control of any of their data to partners while earning some money in compensation.