Cryptocurrencies are breaking the Google-Amazon-Apple monopoly over user data

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2022-11-28 08:45:44

Blockchain is weakening Big Tech companies and cloud service providers, especially when it comes to the “Internet of Things” (IoT-Internet of Things).

Cryptocurrency – Crypto is changing the monopoly position of user data of the world’s technology giants

For decades, banks and insurance companies have used the same highly profitable centralized business model. Also for decades, big Tech companies like Facebook, Microsoft, Amazon, Apple and Google monopolized user data for profit. However, blockchain projects can significantly challenge Big Tech’s ability to capture user data.

In 2015, the future of money was top of mind by financial experts at the World Economic Forum in Davos. There, they began to seriously focus on the challenges posed by the rise of Bitcoin (BTC), digital assets, and fintech. The financial world is starting to realize that new technologies are changing everything in this area, from savings to transactions to cross-border and peer-to-peer payments and transactions.

Then, in the summer of 2020, the decentralized finance (DeFi) “renaissance” took place. After a few years that saw the phenomenal rise of this new concept, the machine economy began to take center stage and concerns about who would own the data, the big new commodity. best of the world.

Thanks to blockchain, DeFi, SocialFi, GameFi and an explosive new asset class have emerged: machine finance (MachineFi) or a decentralized machine economy. It allows owners of billions of internet-connected devices worldwide to monetize them, and developers to build decentralized applications (DApps) that collect device data for monetization.

One question arises: Why? Why do devices need financialization or decentralized markets? The answer is pretty clear.

Big Tech has built a trillion dollar empire selling user data. Blockchain can change that by democratizing data and the machine economy.

Historically, machine economies have failed to gain traction due to the infrastructure and capital requirements required to operate them. Blockchain changes that by providing users, businesses, and developers with an end-to-end solution to distribute, orchestrate, and monetize large numbers of smart devices as part of a unified network of machines.

There are currently more than 50 blockchain projects related to the Internet of Things (IoT). There are also a number of traditional tech companies — such as IBM, Azure, Samsung, Apple, Google, and Amazon — that are combining IoT and blockchain to power the burgeoning machine economy.

The only truth

So when we look back at 2021, we see that as the year blockchain got smart. Oracles introduced a new data source that provides factual information about the real world to make them more secure and reliable. Agreement on the price of Bitcoin and other crypto assets soon followed, creating a “single version of truth” that led to the development of an entirely new financial system. DeFi is the foundation for new concepts like peer-to-peer lending and lending as well as yield farming, opening up new opportunities for investors to earn passive income. Verifiable real-world data has become the proof needed for the DeFi revolution.

Everyone in the crypto space is aware of proof of work and proof of stake, the proof given to the blockchain for rewards or rights.

If a Bitcoin miner proves they have solved a computationally intensive problem, then they will qualify as the next block producer. For Ethereum, if someone stakes a certain amount of Ether (ETH), they are eligible to become an Ethereum validator.

Likewise, a “single version of truth” from secure, objective machines would be proof of work done in the real world, creating limitless opportunities for new business models. .

Proof of anything

What if “evidence” could also be generated from common activities people perform in their daily lives? IoT devices and machines — such as smart home devices, wearables, cameras, and autonomous vehicles — have the potential to become “evidence providers” that can use blockchain to capture convenience benefits and value that people create from their daily activities.

Proof of presence can be identified from an on-board asset tracker that provides real-time GPS location information to a community-sourced map. In the insurance space, proof of health can be provided by health data from a wearable device, or proof of safety can be derived from driving patterns. Proof-of-human helps verify people’s identity with biometric information.

Smart devices and machines on the blockchain will provide the opportunity to return ownership of data to people, allowing them to do what they want with their assets — including monetizing them. Blockchain-based IoT projects deliver greater trust, security, interoperability, and scalability than previous projects, and create new efficiencies and business value by based on data provided by IoT devices and sensors.

Smart Devices: The New Machine Economy

By 2030, estimates suggest that IoT projects will be worth more than $12 trillion globally. But who will own this value? Will large corporations continue to centrally manage devices in the cloud and become the gatekeepers of the new machine economy? We are at a pivotal moment in history. Decisions about how the machine economy develops will reap consequences — or benefits — for decades.

A purpose-built, decentralized backbone to enable billions of machines on the blockchain, is what we need to democratize the machine economy/IoT industry and remove it from our domain. Big Tech. The IoT machine economy will require a combination of blockchain, secure hardware, and confidential computing to empower user-owned devices, applications, and services:

  • Secure hardware collects and signs real-world data that anyone can verify and trust.
  • Then, real-world data oracles feed this verifiable data onto the blockchain in a trusted way.
  • Decentralized identity allows humans and machines to own their data as digital assets that they can earn and trade using DApps.

By combining the integrity of secure hardware with the immutability of the blockchain, we are able to create a new model for end-to-end trust to help ensure that the machine economy evolves accordingly. way to create more opportunities for users and limit the influence of the few large companies that will seek control of it.

This article is for general information purposes only and is not intended and should not be considered investment or legal advice.

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