{"id":12589,"date":"2021-10-18T19:07:00","date_gmt":"2021-10-18T19:07:00","guid":{"rendered":"https:\/\/dataethics.eu\/?p=12589"},"modified":"2021-10-19T15:41:47","modified_gmt":"2021-10-19T15:41:47","slug":"users-can-take-back-their-data-in-a-pds-without-sacrificing-their-privacy","status":"publish","type":"post","link":"https:\/\/dataethics.eu\/da\/users-can-take-back-their-data-in-a-pds-without-sacrificing-their-privacy\/","title":{"rendered":"Users Can Take Back Their Data in A PDS Without Sacrificing Their Privacy"},"content":{"rendered":"\n

The market for Personal Data Stores is growing. Personal Data Stores are technologies which share the ambition of letting users remain in control of their own data. But not all of them are likely to succeed in the privacy-preserving quest. Some are challenged by their underlying business model, others by their organisational setup. However, a sweet spot exists, where Personal Data Stores – the ones we are rooting for – are likely to be able to scale up without sacrificing their ideals. That\u2019s our take on how to make sense of this vital part of our digital future.<\/strong><\/p>\n\n\n\n

Fuelled by big tech’s exploitation of user\u2019s personal data, a new and hugely exiting breed of privacy-preserving technologies has emerged: Personal Data Stores. They comes with the promise of empowering the users to reclaim control of their digital lives.<\/p>\n\n\n\n

Naturally, not all Personal Data Stores (hereafter just \u201cPDS\u2019\u201d) are the same. Some focus on storage of data, like extended cloud services. Others on cryptography and on how to make secure computation possible. Others again on utilising data for valuable services to users.<\/p>\n\n\n\n

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Full Disclosure: This analysis is written from our vantage points as professionals embedded in the space ourselves. You might disagree with how we portray individual PDS\u2019 and you most certainly should question how we treat the PDS\u2019 (polypoly and Data for Good) with which we are personally involved. Jon is an affiliated pro bono specialist with Data for Good Foundation, and during the research Jon was employed by polypoly Denmark. Pernille is pro bono in the advisory board of both polypoly and Data for Good Foundation. But nevertheless we hope the basic analysis of the forces at play have helped illuminate the PDS\u2019 playing field, and draw attention to principles, which at least we find to be decisive for the future development of our digital world.<\/span><\/em><\/p>\n\n\n\n

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But there\u2019s an important aspect on which the PDS\u2019 differ: Their ability to ensure users the privacy offered by the PDS will be respected not only now, but also in the future. Making great solutions today isn\u2019t necessarily a guarantee the solution is also great tomorrow. Read on to learn how and why this is.<\/p>\n\n\n\n

First Overview of PDS Market<\/strong>
We\u2019re building this analysis on the Personal Data Store Survey we conducted during the summer of 2021 (for full survey results, click here<\/a>). To the best of our knowledge, the survey represented the first publicly available overview of PDS solutions (see table 1).<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

The survey is, however, fra from perfect: Only 13 out of 28 identified PDS\u2019 participated, and many more might exist. Also the results from the survey are nearly all based on pure self-descriptions from the participating PDS\u2019, which leaves a lot of leeway for misunderstandings or straight out false answers.<\/p>\n\n\n\n

Virgin Market<\/strong>
When going through the results, what first stroke us, was how relatively small and immature most of the PDS\u2019 seemed. The PDS\u2019 which stood out to us as least mature was Onecub and Schluss, who don\u2019t yet have a functioning app and iGrant.io, OwnYourData and Ethi, whose apps seemed only very basic. Also all of these PDS\u2019 have raised modest levels of investments \u2014 they disclose themselves, that the combined investments and grants are all below 2 mil. USD.<\/p>\n\n\n\n

In the other end of the maturity spectrum comes Digi.me with investments of more than 30 mil. USD raised and Dataswift with 15 mil. USD raised. Both of them have functioning apps.<\/p>\n\n\n\n

In between the mature and relatively immature PDS\u2019 comes a middle category with Mydex, Polypoly, CitizenMe and Meeco. These PDS\u2019 all reports having raised between 4 and 10 mil. USD each. They also all have functioning apps, however with varying degree of functionality (except Data for Good and Mydex, who seems to work through partners\u2019 setups).<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Most of the PDS\u2019 choose not to disclose the number of users. Mydex says it serves more than 1.000.000 users through partners, CitizenMe 327.000 users, and digi.me had 100.000 users according to a January 2019 article by BBC.<\/p>\n\n\n\n

You\u2019re the Product<\/strong>
\u201cIf you\u2019re not paying for a service, you\u2019re not the customer \u2013 you\u2019re the product being sold\u201d. If this well-known saying is be taken as the standard by which to partly evaluate the privacy-friendliness of the PDS\u2019, the outlook is bleak. In the Personal Data Store Survey only five of the 13 PDS identify direct payments from users among their revenue streams \u2013 and only two PDS\u2019 \u2013 Ethi and Schluss – claims user payments to be the only revenue stream on which they rely. See figure 1.<\/p>\n\n\n\n

Not that business models building on payment directly from the user is all good. If user payments is your only revenue stream, you might find it very hard to scale your service: To reach mass markets, price is often a determining factor. And \u201cfree\u201d tends to outperform \u201cpaid\u201d by large margins. As a result, PDS\u2019 relying only on user payments risk that not a lot of people will ever benefit from it.<\/p>\n\n\n\n

He who Pays the Piper, Calls the Tunes<\/strong>
A business model build on sales of data-products to third-parties, on the other hand, is, we would argue, the most potentially privacy-challenging position for a PDS to rely on. As figure 1 shows, seven PDS\u2019 declare themselves to do exactly this \u2013 one of these, digi.me, marks sales of data-products as their only revenue stream.<\/p>\n\n\n\n

This is not to say that a data-product sales powered PDS cannot be perfectly privacy-safe. Indeed, all the surveyed PDS\u2019 adhere to various privacy-ethic principles, all claim they empower the user to manage consents to data usage, and all indicate users’ data is stored on servers legally within the realm of the EU, as the GDPR prescribes.<\/p>\n\n\n\n

But as another saying goes, \u201che who pays the piper, calls the tunes\u201d and we cannot escape the notion, that PDS\u2019 relying on sales of data-products risk being drawn towards satisfying the needs of the paying customers, not users. At least if not other safeguards \u2013 as the organisational aspects touched upon below – are put in place.<\/p>\n\n\n\n

BtB: Licensing and Consulting Marks Middle Road<\/strong>
Two more revenue streams were identified in the survey, both generating revenue from third-parties: licensing fees from usage of the PDS technology and payment for consulting services helping third parties to utilise PDS technology. These two revenue streams go hand in hand: Figure 1 shows how eight PDS\u2019 claim to rely on both of these revenue streams; one PDS generates revenue from only one of the two.<\/p>\n\n\n\n

Even though third-parties \u2013 not users \u2013 are the ones from whom revenue flows, technology and consulting business models don\u2019t evolve around user data. Therefore they are not potentially as malign as the data sales business model. In terms of incentives to compromise user privacy, the licensing- and consulting revenue-streams therefore falls in between the sales of data products and user-payments business models.<\/p>\n\n\n\n

Ranking PDS from a Privacy-business Model Perspective<\/strong>
Combining the above considerations into a prioritisation of which PDS\u2019 have the most privacy friendly underlying business model produces figure 2.<\/p>\n\n\n\n

To us, the PDS\u2019 with the most privacy friendly business models are thus Schluss and Ethi, which relies solely on users paying for the service, and we thus take for granted that data is not used to capitalize on in any way. They are followed by OwnYourData.eu with its combined user payments and sales of technology licensing and consulting business model.<\/p>\n\n\n\n

Mydex, OneCub and Meeco, who are based solely on sales of technology licensing and consulting are in a middle category together with iGrant.io and Livescope Labs, who subscribes to all available business modesl, balancing them all nicely out. Also the middel category consists of Dataswift, CitizenMe and Polypoly. On top of technology licensing and
consultancy, these three PDS\u2019 also subscribe to sales of data products, which puts them structurally a bit lower than the rest of the group.<\/p>\n\n\n\n

Data for Good generates revenue from technology licensing and data products; a combination that sets them at a somewhat greater privacy risk. As we shall see in a minute, Data for Good employs a privacy-friendly technology and has erected solid governance structures, both of which serves to alleviate these dangers.<\/p>\n\n\n\n

Digi.me marks the bottom of the prioritisation scheme with sales of data products as their only revenue source.<\/p>\n\n\n\n

To Aggregate or not to Aggregate<\/strong>
Another way to assess the privacy-safeness of the data-product selling PDS\u2019 is by looking at which kind of data, the PDS\u2019 allow customers to buy access to. Here the main question is, if data is aggregated and anonymised before they are handed on, or are sold \u201cas is\u201d.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Aggregated and anonymised data sales are preferable from a privacy perspective, all other things being equal and if the anonymisations methods are of high quality.<\/p>\n\n\n\n

Two PDS\u2019 – CitizenMe and Data for Good Foundation – say they allow users to sell access only to aggregated and anonymised data. LifeScope Labs, Polypoly and OwnYourData states they let users sell access to both aggregated and anonymised data as well as data themselves, presumably in different data-products. Depending on how and on which terms the sales of non-anonymised data are done, this would indicate a somewhat lower level of privacy. The same goes for Mydex and DigiMe, which let the users sell access only to non-anonymised data. Also Schluss lets the users sell access to non-anonymised data.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

From a privacy perspective, if data is to be shared, it thus should be done sharing aggregated and anonymised rather than raw data. However, it\u2019s hard to conclude on the privacy offered by the PDS\u2019 on this variable alone. This is because a main point of PDS\u2019 is to enable the users to be in charge of their own data – including granting access to them to third-parties, if the users wishes to do so. To conclude whether privacy is endangered or not by letting the user sell access to raw data, the actual controls being offered to the user by the PDS needs to be assessed as well, a point not addressed in the Personal Data Store survey..<\/p>\n\n\n\n

Who Controls how Data is Controlled?<\/strong>
One thing is how the PDS\u2019 describe how they protect users personal data today. Another is how users personal data will actually be protected tomorrow. Or put in another way: What stops a PDS from turning what might today be a perfectly privacy-safe solution into a solution crudely selling on users data, without offering users the proper controls for this? Even the best intentioned PDS might encounter a change of strategy or leadership, which puts the PDS at odds with the privacy-terms the PDS originally offered the users. Without clarity on who\u2019s controllling how data are controlled, any privacy-assessment is inherently fragile.<\/p>\n\n\n\n

\u201cOne Person, one Vote\u201d Safeguards Privacy<\/strong>
To shed light on this question, the Personal Data Store Survey asked the PDS\u2019 to state how they\u2019re organised. Three PDS\u2019 declare themselves as Cooperatives – LifeScope, Polypoly and Schluss. Cooperatives are companies owned by the members, where profits are distributed to members only, and where members form the deciding body of the PDS \u2013 based not on number of shares, but on the one person-one vote principle. This is meant to ensure that cooperatively organised PDS\u2019 will not make decisions which runs counter to the interest of the members. The cooperative organisation also theoretically minimises the risk of \u201chostile\u201d takeovers, as a single entity trying to buy itself into the cooperative will only obtain one vote, no matter how much money it invests in the cooperative. A cooperative structure is therefore highly efficient as a privacy safeguarding organisational form.<\/p>\n\n\n\n

Non-profits and Foundation-based are Runner-ups<\/strong>
Two PDS\u2019 states themselves as non-profits – Data for Good Foundation and OwnYourData.eu. Like cooperatives, non-profits are shielded from hostile takeovers, but non-profits doesn\u2019t secure the interest of users the way cooperatives do, as the users have no say in a potential sale of the PDS. Still, non-profits are also highly effective as privacy safeguarding organisational form.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

A third category of PDS\u2019 states that they\u2019re for-profit foundation-based. Like cooperatives and non-profits, they therefore provide various safeguards against hostile take-over. This applies to DataSwift, Mydex and Onecub. While both DataSwift and Mydex are entirely bound by their foundations, Ondcub is a hybrid, one half being a cooperative, the other half a for-profit company. (A more precise characterisation of the foundations of these cooperatives are not carried out in the Personal Data Store Survey, so we cannot for now really differentiate between the three on this parameter.)<\/p>\n\n\n\n

Five PDS\u2019 Potentially for Sale<\/strong>
Finally five PDS\u2019 are regular private, for-profit companies, which in their organisational form provide no safeguards against potential privacy-hostile takeovers and which, from a privacy perspective, is therefore the least assuring group of PDS\u2019. These five are Ethi, Meeco, iGrant.io, Citizen.Me and Digi.me.<\/p>\n\n\n\n

Ranking PDS from an Organisational Perspective<\/strong>
In figure 3 we ranked the PDS\u2019 based on their business models. Now we can rank them also in terms of which of them has the most privacy friendly organisational. See figure 4.<\/p>\n\n\n\n

Once again, Schluss places itself in the potentially most privacy-preserving group, the cooperative group – joined by LifeScope Labs and Polypoly.<\/p>\n\n\n\n

The cooperatives are followed by the non-profits – DATA for GOOD foundation and OwnYourData.eu – which again is followed by the foundation-based PDS\u2019. In this group the dually organised ONECUB scores slightly lower than DataSwift and Mydex and the regular for-profits PDS\u2019 Ethi, Meeco, igrant.io, CitizenMe and digi.me last.<\/p>\n\n\n\n

Organisation vs Business Model vs Investments<\/strong>
By considering both the business models and organisation\/governance of the PDS\u2019 it\u2019s not possible for us to paint a more complete picture of which PDS\u2019 have the most privacy-friendly long-term setup. This is what we do in figure 5.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

In figure 5 we\u2019ve added one more dimension: the investments and grants raised by the PDS\u2019, a measure which we here take to serve as proxy of the maturity of the PDS\u2019: The more investments and grants, the more mature – so the logic goes. Graphically this is indicated by the size of the bubbles of each PDS: PDS with more than 10 mil. USD in investments are depicted as large bubbles, those with 4-10 mil. USD in investments and grants as medium bubbles and those with less than 4 mil. USD in investments and grants as small bubbles.
The PDS\u2019 situated in bottom left-hand corner of the diagram are the ones who poses the greatest potential privacy-risks, as these both rely on a business model of selling data-products, which are potentially in danger of being drawn towards privacy-stripping, and at the same time are regular for-profit companies, ripe for hostile take-overs. The risk is, that the PDS\u2019 will eventually be bought by other parties for the purpose of profitting of the users data in non-privacy respecting ways.<\/p>\n\n\n\n

Gravitational Force in Play<\/strong>
To make things worse, the bottom left-hand corner of figure 5 also is endowed with its own gravitational forces. CitizenMe, iGrant, Meeco and Ethi – and to a lesser degree Onecub are all potentially subjected to a pull towards the privacy-unstable lower left-hand corner, as illustrated in figure 6.<\/p>\n\n\n\n

This goes for CitizenMe and iGrant: they don\u2019t sell data products today, but their customers are business customers, and they might make the PDS\u2019 an offer which could be hard to refuse.<\/p>\n\n\n\n

By the same token MeeCo and Ethi might be tempted to start offering licensing and consulting services to business customers, and if this happens luring them into selling data products could be a next logical step. The distance from a user-paid service to sales of data-products is greater, and the pull of data-product profits therefore weaker, but the pull still exist. Also these PDS\u2019 are in danger of being pressured into the lower left-hand corner.<\/p>\n\n\n\n

The gravitational forces of the left-hand corner also applies to organisational forms: Every weakness in the bylaws of a foundation-based, non-profits and cooperative PDS\u2019 will potentially lead to for-profit motives gaining strongholds vis-a-vis preserving the PDS\u2019 privacy friendliness. Actually the strength of the limits imposed by the foundations bylaws and laid down in their legal structure is the one key factor which effectively can lessen the pull of the forces instituted in the lefthand corner of the diagram. This is why also ONECUB potentially experiences the pull.<\/p>\n\n\n\n

In this way “gravitational forces\u201d will over time attempt to drag PDS\u2019 in the surrounding areas closer and closer to the \u201cfor profit\u201d\/\u201csales of data-products\u201d position.<\/p>\n\n\n\n

Unstable Zone<\/strong>
Another kind of dynamics affects Ethi and Schluss in the top section of the diagram. This dynamic doesn\u2019t pull the PDS to any corner. On the contrary it pushes them downward.<\/p>\n\n\n\n

The top of the diagram is thus an inherently unstable zone, and the PDS\u2019 there, which relies on users paying for the service, are constantly tempted to find other ways to grow and make money. When users are given the choice between free and paid services, free services usually draws by far the largest number of customers. Unless the users face direct and instant gratification for actually paying for using a service, most users tend to go for a free alternative, if one exists.<\/p>\n\n\n\n

The \u201cpaid for by users-only\u201d PDS\u2019 will be pushed downwards towards other kinds of revenue-streams in order to maintain themselves. If possible, they\u2019ll be gently pressured towards adopting eg. licensing and consulting businesses as well.<\/p>\n\n\n\n

(If they should resist the push, the \u201cpaid for by users\u201d-PDS\u2019 will most likely find themselves with no user growth and no traction, and thus with a limited ability to acquire the position as a market leading solutions, addressing and effectively solving the privacy-issues of our time.)<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Privacy Sweet Spot<\/strong>
As an effect of the two dynamics pushing and pulling the PDS\u2019, the space in the lower right-hand part of the figure is the place, in which the privacy\u2014intentions of the PDS is left untouched: The business model is suited to draw a significant revenue, if well executed, and the organisational safeguards are in place to protect the PDS\u2019 from corrupting their privacy pledges. This is the \u201cPrivacy Sweet Spot\u201d of the model – occupied in order of maturity by Dataswift, Data for Good Foundation, Polypoly, Mydex – and the nascent OwnYourData and Lifescope Labs.<\/p>\n\n\n\n

In this article we\u2019ve laid out our analysis of the Personal Data Store space. It\u2019s a space still in it\u2019s infancy, but already key traits have emerged. Some PDS\u2019 will likely grow and while some of these are poised for privacy-sell out in the process others will succeed in safeguarding the privacy positions of their users.<\/p>\n\n\n\n

Go to the landing page of the Personal Data Store Survey 2021<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

The market for Personal Data Stores is growing. Personal Data Stores are technologies which share…<\/p>\n","protected":false},"author":42,"featured_media":12569,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[193,9,370,240],"tags":[3836,2899,3843,3839,3841,2898,3838,3840,3842,923,3833,3832,3834,3835,919,3837,3844],"class_list":["post-12589","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-analysis","category-latest-news","category-news","category-surveys","tag-dataswift","tag-digi-me-2","tag-ethic","tag-igrant","tag-lifescope-labs","tag-meeco","tag-mydex-2","tag-onecub","tag-ownyourdata","tag-pds-en","tag-pds-2","tag-pdss","tag-personal-data-store-survey","tag-personal-data-store-survey-2021","tag-personal-data-stores","tag-polypoly","tag-schluss"],"yoast_head":"\nUsers Can Take Back Their Data in A PDS Without Sacrificing Their Privacy · Dataetisk Tænkehandletank<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/dataethics.eu\/da\/users-can-take-back-their-data-in-a-pds-without-sacrificing-their-privacy\/\" \/>\n<meta property=\"og:locale\" content=\"da_DK\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Users Can Take Back Their Data in A PDS Without Sacrificing Their Privacy · Dataetisk Tænkehandletank\" \/>\n<meta property=\"og:description\" content=\"The market for Personal Data Stores is growing. 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