All the devices you use during your online activities (which can be as simple as mindlessly browsing the web) generate tons of data each day. You might not give this much thought, but in reality, all this information is either sitting idle or being harvested by large corporations that use it for targeted advertising or to improve their own services.
Is there an alternative, and can you put this data to better use?
Well, it only requires a small peek outside of the traditional “internet” box, i.e., Web2. There are decentralized data platforms that allow the community to monetize all the data they’re generating and turn it into a side hustle.
How Data Became a Hot Commodity
As soon as the internet became a core technology in our lives, companies found a way to earn a buck using our personal information, primarily through ads. Google (among others) realized that the more information it had on people, the more efficient it was at delivering personalized ads based on different factors such as demographics and user behavior.
The proliferation of social platforms that encouraged sharing private information certainly didn’t help. Even simple ranting on Facebook would leave companies with rich datasets. As smartphones hit the scene, the issue became worse when companies found a way to harvest data beyond social media.
The fact that user data can also be employed for training new AI models (which are only growing more popular) makes data synonymous with gold these days. In short, tech corporations earn money by harvesting information from our digital activities, and none of us sees a dime for the “effort”.
At the same time, there’s a high demand for user-owned data in Web3, which, in contrast to the traditional internet, actually supports infrastructures for user contribution and monetization of personal data.
What Is a Decentralized Data Contributor?
A perfect way to break up the corporate data monopoly is to leverage incentive-driven data collection powered by the blockchain.
In Web3, this is by no means a new concept, since the underlying infrastructure and decentralized doctrine allow people to contribute everything from bandwidth and computing power to metadata from their personal devices in exchange for crypto. However, the popularization of platforms that only use an opt-in mechanism, require no coding or technical setup, is undoubtedly a revolutionary concept.
This is especially true when you consider how transformative this data can be. For instance, it can be used for training new AI models, network reliability metrics, and environmental parameters (sensor data). The old expression about the sky being the limit certainly applies here, as users can also share their fitness tracker data for research or development of health tech.
A Look at the Platforms Powering This Movement
Democratization of tech that lets ordinary people partake in a sophisticated digital environment is the very crux of the decentralized data collection movement. There are many projects finding new ways to involve the community and provide rewards for their effort, all for the sake of benefiting the user and the development of technology in general.
Helium is a great example.
This Web3 project allows users to play a part in building and maintaining wireless infrastructures in exchange for cryptocurrency. It might sound complex, but in reality, you only need to sign up and set up a hotspot to provide wireless coverage for local IoT devices.
DIMO, on the other hand, provides you with the ability to connect your car to a decentralized network, share real-time data, and earn crypto rewards just by driving. Car manufacturers and insurance companies traditionally harvest this information, but using DiMO allows you to fully control what happens to it.
Data for AI training is particularly hard to come by, which is why OORT is such an interesting project. Its DataHub lets users contribute data through a simple interface, while maintaining full control of the assets and their privacy. Naturally, such a contribution is rewarded through cryptocurrency.
Why This Side Hustle Appeals to the Web3-Savvy
As a rule, the Web3 community is quite dedicated to the idea of decentralization and creating more equitable digital infrastructures.
But how dedicated are we talking, here?
Well, OORT’s community-sourced datasets shot to the very top of multiple Google Kaggle categories, proving that the level of dedication is way beyond what the critics of Web3 generally assume.
In addition to the sheer love of contributing to open networks, another reason why decentralized data collection proved to be so efficient is the allure of easy passive income.
Users can start earning rewards with minimal effort. Decentralized data collection is non-invasive and doesn’t require lifestyle adjustments or active monitoring, which is ideal for the fast times we’re living in.
Risks, Privacy & Ethical Considerations
All the wonders of data monetization aside, any privacy concerns you may have are valid, particularly when you consider that data was often misused by tech companies in the past.
This is why you should conduct thorough research before investing your time and giving up your information.
Fortunately, all platforms mentioned today operate on privacy-by-design or zero-knowledge models. In short, this cryptographic technique allows you to prove to another party that you possess information without revealing what the information is about, thus proving data authenticity while also maintaining your privacy.
Moreover, only engage with platforms that are non-custodial, fully transparent, and allow you to opt out at any time. That way, you can make sure that you stay in control while engaging in decentralized data collection.
The Future of Participation in the Digital Economy
It’s only a matter of time until the entire internet economy shifts from passive consumption to active contribution. While data contributing may be a niche community today, the fact remains that traditional data sourcing has failed in generating enough ethical, transparent, and diverse data. Hence, there is a real chance it’s going to become as popular a side gig as driving for Uber or DoorDash.
If you’re not sure where to start, OORT’s DataHub or Helium are both solid options. Considering you’ll be arriving at the party early, you not only gain an opportunity to earn passive income, but also be one of the few who have decided to make the world a better place for everyone.
The post A New Digital Side Hustle: Earning Rewards by Contributing Data appeared first on Datafloq.
