Data Sharing and Monetization in the Age of AI
Data is the fuel for AI, and the more personal the data, the better. But people increasingly are disinclined to share their data without some reciprocal consideration, putting a potential lid on AI growth just as the agentic revolution starts. One possible way out of the data doldrums and towards the agentic AI promised land is the use of zero-knowledge proofs on a distributed blockchain, which an outfit called Midnight is currently pursuing.
What is Blockchain?
A blockchain is a distributed ledger of records that are linked through cryptographic hashes. Once a record, or a block, is written to the ledger, or the chain, it’s distributed to all nodes in the cluster and can be publicly inspected, meaning it’s effectively there forever in an unalterable form.
Zero-Knowledge Proofs
A zero-knowledge proof is a mathematically proven way for one party to share one piece of information in a Boolean, yes-no manner, without sharing extraneous underlying detail. For example, a zero-knowledge proof could be used to grant or deny someone access to drink at a bar. Instead of sharing a government-approved ID card, which has the requestor’s verified age but also a lot of other information that is irrelevant and potentially private, the requestor could submit a zero-knowledge proof that delivers the relevant information for that particular transaction.
Midnight’s Approach
Midnight is developing a data protection blockchain that utilizes zero-knowledge proofs to enable online businesses and their customers to conduct data-enabled commerce in a precise and trusted manner. The company’s approach allows the user or the builder of an application to selectively disclose what pieces of data will be shown to a counterparty, preventing the data from being written on the blockchain unless it’s really necessary. The real data resides with the user, on their mobile device or computer, and can only be shared with the counterparty’s consent.
Ramifications for Data Sharing and Monetization
The real power of Midnight’s approach lies in its ability to enable businesses to continue to operate without necessarily being in touch with the data, which also saves them a lot of money in terms of data security and data governance. This enables businesses to offer rewards or discounts to customers in exchange for getting access to information about them, while keeping their data private. This approach also opens up new possibilities for data sharing and monetization in the age of AI, where data is the fuel for AI and the more personal the data, the better.
Conclusion
Midnight’s approach to data sharing and monetization using zero-knowledge proofs on a distributed blockchain has the potential to revolutionize the way businesses interact with their customers’ data. By enabling businesses to selectively disclose what pieces of data will be shown to a counterparty, while keeping the underlying data private, Midnight’s technology could pave the way for a new era of trusted data sharing and monetization.
FAQs
Q: What is a zero-knowledge proof?
A: A zero-knowledge proof is a mathematically proven way for one party to share one piece of information in a Boolean, yes-no manner, without sharing extraneous underlying detail.
Q: How does Midnight’s technology work?
A: Midnight’s technology uses zero-knowledge proofs to enable online businesses and their customers to conduct data-enabled commerce in a precise and trusted manner. The company’s approach allows the user or the builder of an application to selectively disclose what pieces of data will be shown to a counterparty, preventing the data from being written on the blockchain unless it’s really necessary.
Q: What are the benefits of Midnight’s technology?
A: The benefits of Midnight’s technology include enabling businesses to continue to operate without necessarily being in touch with the data, which also saves them a lot of money in terms of data security and data governance. This enables businesses to offer rewards or discounts to customers in exchange for getting access to information about them, while keeping their data private.
Q: How does Midnight’s technology relate to AI?
A: Midnight’s technology has the potential to revolutionize the way businesses interact with their customers’ data in the age of AI. By enabling businesses to selectively disclose what pieces of data will be shown to a counterparty, while keeping the underlying data private, Midnight’s technology could pave the way for a new era of trusted data sharing and monetization that could fuel the growth of AI.
