How Banks can help build Web 3.0
We produce more data now than ever before. It’s all around us, growing exponentially; from people, companies, governments and all their relevant devices.A valuable stream of behavioral information resides in our transactional data which has so far been stored exclusively by banks. They, like many large internet companies, hold a firm grip on this data, claiming it, and the insights it provides, as their intellectual property.
With the emergence of Open Banking and PSD2, the tide is turning. With Open Banking, consumers will soon have the unprecedented choice to share their information with third parties, who can in turn leverage this data and create new value-added experiences for the original consumer.
With this in mind, I am interested in exploring a system and a protocol that:
- Has incentives built-in to attract the best data and guarantee Machine Learning models that can deliver optimal results.
- Leverages network effects that engage users, data originators and data scientists to attract more capital, to reward the smartest systems and is self-reinforcing
- Guarantees that all players can partake in this data marketplace securely and anonymously in a trustless environment.
This system takes the form of a blockchain-based Machine Learning Marketplace which leverages private Machine Learning, allows for training on sensitive private data without revealing its contents, and blockchain-based incentives, which allow these systems to attract the best data and models to make them smarter.
I believe these marketplaces will transition us out of the current era of Web 2.0 data monopolies into a Web 3.0 era of open competition for data and algorithms, where both are reciprocally monetized. Banks today are in a prime position to help become the backbone for this solution, by embracing Open Banking, pivoting their existing business model, and helping consumers store and generate value from one of their most valuable assets, their personal data.
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