How DAX Protects Data Owners
Q. We recently received this question in our Telegram channel:
“How would I as a Data Owner ensure that the Exchange or the Data User is not reselling my information to a third party? Does the token contain a smart contract of everyone who has access? Also would that access be viewable through some sort of GUI for the Data Owner? The traditional use case example I would think of is signing up for an online service, only to get on email lists that I never signed up for.”
Disclaimer: the below information is illustrative and we’re open to feedback. We reserve the right to update it as new information becomes available to us.
A. Thanks for the great question!
The DAX marketplace will consist of 4 components: Consumers, Enterprises, Exchanges, and the Token. The primary use case of the DAX Token will be transparent and auditable data transactions on the DAX network using smart contracts.
Raw consumer data will not be passed directly to Enterprises to prevent “data leakage.” The current industry standard for syncing data is the MD5 Algorithm as illustrated by Wikipedia. This ensures that raw data is not transmitted but rather “matched” against existing data from both parties.
As much as we’d like to be 100% on-chain and fully decentralized Day 1, the technology that can support the throughput of our network just isn’t there yet. We already see over 100M unique consumers each month and our platform regularly exceeds 5,000 requests per second.
Here’s how to think about our on-chain vs off-chain options:
On-chain support: Smart contract-based transactions. Any exchange of value that is consent-driven will be executed through on-chain smart contracts. The contract system will be built using an ERC20 token that allows for transparency and auditability.
Off-chain support: Data verification protocols for the data-wallet and other high request applications. Given the scale of data through DAX, there will be capabilities of the platform that requires off-chain infrastructure. Today we use a combination of enterprise technologies from Amazon, Google, etc.
Our goal isn’t just a protocol, we want to build products that are loved by Consumers and Enterprises. As such - the DAX data wallet will have an omni-device GUI where consumers can view, edit, and approve access to their data.
In addition to our desire to decentralize data ownership, the EU General Data Protection Regulation (GDPR) is forcing regulation that will require Enterprises to adopt a spirit of consumer education and transparency. The law goes into effect on May 25, 2018 and encompases 5 core traits that we will support:
Right to be Forgotten
Right to Access
Right to Hault Data Processing
Right to be informed
Stay tuned for more details on how DAX will utilize blockchain technology and thanks for being part of the community!