What is personal data means today?
In the 21st century, personal data were like oil in the 18th century; it is a vast untapped resource. Just like people profit from oil, those who will hold personal data to its value will reap big. Currently, personal data is the backbone of progress. Without it, companies and governments would not function efficiently.
The blockchain technology
With the internet, businesses can now easily launch new services and products since the entry barriers are very low; children can even build websites. Furthermore, the internet connects the globe, enabling outsourcing, mergers and other business possibilities making it easier for brands and entrepreneurs to earn revenues. On top of all this, companies can now use the blockchain technology to tackle various organizational and business issues.
Decentralization, transparency, quick transactions and cheaper transaction costs are all people need in the current interconnected business world. By distributing digital information without copying, blockchain based startups seek to meet this need. The block-chain technology has established a building block for a new kind of internet where personal data will be a gold mine.
Importance of personal data
Today, everyone is selling something, a service or a product, and even for the big brands, competition is stiffer than ever. Therefore, every business aims to meet the deepest desires of the target consumers, and to remain ahead of the competition, companies need the right sales and advertising strategies. They need to understand their target market and know the best way to reach the customers, the right advertising message, and the right time to advertise and offer the products or services.
This need nurtures the importance of personal data since it is only through this data that entrepreneurs can understand their target consumers. Personal data is the new oil in the 21st century since without it, businesses will not survive, and the economy will not succumb. Just like oil, raw data is collected, processed, transported and finally stored.
Comparison between the current technology and the blockchain technology
Although the world is finally recognizing the importance of personal data, the current internet technology, compromises the privacy of personal data. Currently, most details of organizations and individuals are available online, in public domains. More so, third parties control, store and use personal data and organizations’ data. Conversely, things are better with the blockchain based startups since there is no third party monitoring or storing personal data. Data is stored in a blockchain that exists as a shared database. The database is not stored in a specific location and anyone can access the records and verify them. This is transparent since being a distributed ledger, all those in the network use the same database or document, and the data can only be changed if they all agree.
Advantages of the blockchain technology
To begin with, while using blockchain technology, you do not have to trust the other party undertaking the transactions. The data is available for the entire network to see, and the records cannot be changed without anyone knowing. Hence, it would be pointless to lie or hack a blockchain database.
In the current model, sharing personal data is quite tricky especially in situations where every entity maintains its own database. For instance, in the health and financial sector, different entities use various databases, making data sharing a challenge. However, since a blockchain based startup uses a centralized database, managing personal data could be way more comfortable.
Have you engaged in any post-trade settlement? Well, it sometimes takes very long since personal data records have to be verified, reconciled and cleared. This could, however, be a speedy settlement since blockchain skips this lengthy process of verification. Financial organizations already have data in their shared database. Verification and reconciliation would be pointless.
Compared to the current model, blockchain technology it is more cost effective since you will evade the overhead expenses of clearing houses or properties and third parties. Furthermore, since the blockchain database is not stored in a specific location, fraud and hacking attacks will be a thing of the past.
Personal data is the new oil; since without it, companies wouldn’t know what to sell to their customers. Personal data makes business better, easier and more efficient while blockchain technology ensures that the personal data is efficiently managed. If you are tired of the paperwork, the blockchain technology is worth a try.