We live in the era that personal data is among the most valuable assets. Big Tech companies have often played the role of feudal lords, wielding immense power over the data serfs—us, the people. But the winds of change are blowing, and with them, new technologies and regulations promise a revolution in data control and portability. But first, let’s do a quick recap of the story.
“Don’t be evil”
Over the current phase of the internet (Web2), the Big Tech companies have built vast empires by harvesting and analyzing our personal data. This data is often used to reinforce their market dominance, sometimes leading to unfair practices that stifle competition and innovation. It’s rather common for Big Tech companies to use their data reach to expand vertically, often swallowing up and coming scale-ups. Even worse, aside from market dominance, cases like Facebook’s Cambridge Analytica scandal spotlight how data can be exploited to manipulate even political landscapes.
The tech giants have also erected walls that make transferring your data to other platforms frustratingly difficult. This lack of portability traps users within their ecosystems, making it hard to switch services and granting these companies unchecked power. We are creatures of convenience. More often than not we will not exceed a level of friction to change and that level of friction tends to be lower the less motivated (or threatened) we feel. This combo makes Big Tech “lock-in” almost a given in our days.
Privacy-Protecting Technologies
Thankfully, the narrative is shifting. New technologies and products are emerging as heroes in this story, designed to protect user privacy and make data control accessible to the individual. Here are a few:
- Decentralized Identifiers (DIDs): Part of the blockchain technology stack, DIDs allow users to create verifiable, self-sovereign identities without needing a central authority.
- Personal Data Stores (PDS): Tools that let users store their data in personal repositories, which they control completely.
- Privacy centric internet browsers: Brave browser and Duck Duck Go are great examples of this category of empowerment tech. By storing data only locally and service context based ads, using these options will help minimize your personal exposure to online data markets.
- DNS-based digital IDs: This is the technology being developed by Magic ID which promises to substitute the SSO monopoly of Big Tech. It gives more control to people over where their data is used and untying the dependency of companies to Big Tech Platforms for identity and access.
Embracing Data Portability and Control
The movement toward data portability isn’t just a win for consumers; businesses stand to gain significantly as well. By embracing technologies that enhance data control and portability, companies can free themselves from Big Tech’s grip, gaining independence and the flexibility to innovate.
Promising to turn the data economy on its head, consent-based access gives businesses direct access to consumer data, together with the ability to gain deeper insights into customer preferences and behaviors. In a research we conducted among online retailers and marketers, more than 80% said they would pay several multiples (even up to 200x compared to the cost of a user engagement today) to be able to connect directly with a real customer vs using SEA and social ads. We believe that the consent-based approach not only builds trust but also fosters a stronger connection with customers while providing a hotbed for privacy-preserving innovations that will help us create a more ethical digital future for everyone.
Regulations and User Empowerment
The battle against Big Tech feudalism isn’t just technological—it’s also legal and cultural. Regulations like GDPR in Europe and CCPA in California are forcing companies to make user data more portable and giving individuals more control over their personal information. These laws are like newly forged weapons in the arsenal of user empowerment, helping to level the playing field. Recently the EU increased the GDPR severe fine thresholds to 4% of the global turnover of the trespasser which is daunting even for Big Tech but regulation on its own will not shape the industry.
Our Approach in Tackling the Problem
Empowering the people is key but from our experience in this problem category over the last years it needs to start from the businesses. And then it’s a subtle mix between making it easy for them to participate and giving enough incentive, all while doing the same for the people who take part. At Magic ID, we have been obsessed with behavior that can inspire these changes (cc. BJ Fogg Behavior model). Starting at the business level, Magic ID delivers a product that removes 3 steps (compared to big tech SSO) and the need for any input from the user during signup and ID Verification. Magic ID is also cookie-less with no cross-party tracking of user data, protecting customers’ privacy and paving the way to the new economy in the least threatening way for companies.
Data Freedom
Imagine a world where we never have to sign-up, register, or log-in again. A world where convenience is not a synonym to surveillance. Imagine if you could drop your iPhone and MacBook today and reproduce an identical experience for yourself in the Android and Microsoft ecosystems, only in a few clicks. That’s what data freedom is and it’s our greatest weapon against a technological dystopia where our lives are governed by a handful of “convenient” devices that we cannot escape from.
The good news is that we are in the greatest position to establish that future than ever. Empowering technology is not theoretical anymore and it has the potential to build not only a more fair future but also an equally – if not more – rewarding for all stakeholders.