Picture this: you own a chain of hotels across the country. Summer break is rapidly approaching and you’re looking for a way to bring more travelers to your hotel. You and a rental car company decide to share consumer data so that you can each offer a deal to a segment of customers when they book a rental car or a stay at the hotel. It’s a win for everyone involved – new customers for both businesses and savings for the consumer. But with today’s ever evolving regulations and the threat of data breach, can you confidently share your data with a third party?
The way consumer data is managed has come under significant scrutiny lately, and rightfully so. The past few decades have seen an increased number of data breaches and instances of companies being unable to comply with consumer opt-in and opt-out preferences. As a result, many consumers no longer trust businesses with their data, and an increased number of government regulations have been put in place to mitigate these problems. Businesses have started to wave the white flag – they have all this consumer data and are no longer maximizing its potential. That data is valuable, but how can businesses realize that value while adhering to regulations, respecting consumers’ preferences, and protecting data from outside threats? Simple – with blockchain. Specifically, with Waev’s consumer data protocol.
What is blockchain?
IBM, an industry leader in blockchain technology defines blockchain as, “a shared, immutable ledger that facilitates the process of recording transactions and tracking assets in a business network. An asset can be tangible (a house, car, cash, land) or intangible (intellectual property, patents, copyrights, branding). Virtually anything of value can be tracked and traded on a blockchain network, reducing risk and cutting costs for all involved.” ¹ At Waev, we tailored our network to facilitate secure and ethical consumer data use and third-party sharing so you can realize your data’s value.
What does this mean for consumer data?
Blockchain has three main elements that make it different from traditional data solutions and the best choice for consumer data: distributed ledger technology, immutable records, and smart contracts¹. Let’s talk about what each of these means in the context of consumer data and what we’re doing at Waev.
- Distributed Ledger Technology – Data records in a blockchain exist on a decentralized network, in a peer-to-peer system. This setup eliminates the duplication and reliance on a central authority that come with a traditional database solution. With Waev, your fully encrypted data resides on the blockchain in secure, decentralized data vaults within our network. Data remains encrypted both at rest and during transactions. Values only become visible when permissioned users access records via secure API or with Waev’s custom Data UI. This creates an immutable, single source of truth, and guards your data from external and internal threats, like data breaches or data loss.
- Immutable Records – Waev stores each record of consumer data one time as a block on the decentralized ledger. Every change or exchange involving a record is logged as another block in its chain. This differs from traditional data solutions where a central authority, like a database administrator, has the power to create, read, update, and delete data, often without record of those transactions occurring. With blockchain, a record’s entire journey is permanently recorded in the exact order it occurred. This establishes privacy, accuracy, and trust because data tampering is almost impossible and immediately evident.
- Smart Contracts – Smart contracts are programs stored on the blockchain set to run automatically when certain conditions are met. They can kick off processes and designate how, when, and if certain records are shared. Waev’s solution utilizes smart contracts to apply and enforce consumer consent preferences and data privacy regulations whenever data is used or shared, either externally or internally. Since this logic is all in one place – on the blockchain within smart contracts – we update these programs as regulations change so you stay compliant.
These three key elements come together in Waev’s consumer data protocol to ensure consistent compliance and security in a way that a traditional, centralized data solution cannot. Waev’s network keeps your business compliant and your data tucked safely away from hackers, so you can monetize your consumer data with confidence.
Ready to maximize the value of your consumer data? Contact Us and Waev will make it happen.
¹ What is blockchain technology? – IBM Blockchain. IBM. (n.d.). Retrieved July 11, 2022, from https://www.ibm.com/topics/what-is-blockchain