Are Data Unions the Next Step in the Evolution of the Internet?
Meet the next big thing in crypto: Data Unions. Acting as a bridge between Web2 and Web3, Data Unions help transform the enormous value held by tech giants—user data—into Web3 assets. This shift is a major benefit for the Web3 ecosystem, since the world’s most valuable digital asset, information, can flow into the space, be traded, and even be packaged into financial instruments.
Anyone can join a Data Union and start earning from their data on their own terms. Below are five of the most promising Data Unions in the Web3 ecosystem to date:
- Geo Cash from GeoDB. GeoDB is a blockchain-powered big data ecosystem that rewards users for the data they generate. GeoCash is a data-collection app that allows users worldwide to share private, anonymized data with the GeoDB exchange ecosystem while receiving daily rewards in GEO tokens. With GeoCash, users earn rewards for the data they provide and can also exchange GEO tokens with other users. The app provides user and community insights such as heatmaps, locations, and distances traveled. All shared data is fully anonymized, preventing tracking or targeted advertising.
- Swash. Swash is a browser extension compatible with major browsers like Chrome and Firefox that collects rich browsing data from members to monetize on their behalf. It is the most developed of the Data Unions built on the Streamr stack. Ebrahim Khalilzadeh, Swash’s lead developer, began the project in February 2019 and has shown remarkable progress. Swash’s membership grew tenfold in a year and recently surpassed 10,000 members. Swash has begun selling its data on Streamr and the Ocean Market data marketplace, with products valued at over $300,000.
- TapMyData. TapMyData helps users discover what personal information organizations hold about them. The app provides secure storage and direct access to a master record of personal data. Tap users can earn crypto from their data—for example, earning $TAP tokens for requesting their data, issuing NFT data licenses, or joining data pools to monetize their information.
- Unbanks. Built by developers with backgrounds in banking, real-time data, and application development, Unbanks operates under open-banking rules similar to PSD2 and can read members’ bank transaction data to generate revenue on their behalf. This project shows significant potential.
- Xolo. Xolo is the working title of a prototype project that collects health data through integrations with advanced Withings smartwatches. Still in early stages, the project is recruiting its first test users and refining its data product offerings.
We can expect this space to grow rapidly. Why? Building Data Unions has become considerably easier thanks to existing frameworks and data marketplace solutions that give developers the tools they need to get started quickly. Streamr recently released the latest version of its Data Union framework, enabling developers to deploy a Data Union smart contract on Ethereum with just a few clicks. Developers can also save on fees by using the xDai Bridge.
As tooling improves and more users seek control over how their data is used and monetized, Data Unions are poised to play a central role in bringing valuable, anonymized data into the Web3 economy while returning value directly to the people who generate it.