Rob Nicholas Stone Method To The Madness

Datavest CEO & Founder Rob Nicholas Stone discusses the monetization of private data through his blockchain based application DATAVEST, a cooperative that monetizes user data and pays back individuals in the form of datanotes.

Transcript:
INTRO
Method to the Madness is next.
You're listening to Method to the Madness, a bi-weekly public affairs show on K-A-L-X Berkeley celebrating innovators. Last time on Method to the Madness we talked with Block chain at Berkeley about block chain technology and what that means. Today we're going to be talking with Rob Nicholas Stone, the founder and CEO of DATAVEST, an application that sits on top of this block chain technology.
LISA: Thanks for coming in Rob. 
ROB: Yeah, absolutely!
LISA: What is DATAVEST?
ROB: DATAVEST is a way for individuals to monetize the value of their personal data. 
LISA: How is that different from what's going on right now? 
Rob: Data right now is being monetized. It's being capitalized by some of the largest corporations. And they're able to do that because they have the ability to kind of aggregate all of this data from multiple sources from millions of users. What we're saying is that it's an unfair exchange and the value of your data, the data that you're providing to these companies is greater than the value that is returned to you and it's driving up the largest market capitalizations of the largest kind of Internet platforms.
LISA: So it sounds like you're creating a meta transaction in which the intrinsic value of my data is more than just what I'm giving to Facebook or whatever.
ROB: Individually we don't have much leverage negotiating a fair price for our data. There's a value premium when that data is aggregated. It's been difficult to find a mechanism for allowing individuals to share that data and benefit from the aggregate value that's generated by a platform like Facebook. One of the challenges we had initially was trying to figure out how do we value data is it a pro-rata share of current revenue that that's generated from that data. Is it the kind of commodity price wanted sold by maybe a data broker? or in the context of Facebook and Instagram and Google and Amazon, they're able to capitalize the value because this data, even if they don't know what the application is going to be in the future they're able to price that into the current value of the company. One way that you could look at it is looking at the market capitalization of say Facebook and dividing by the number of users of Facebook. And that's going to be a much larger number than the current revenue of Facebook divided by the number of users.
LISA: I'm curious why you wanted to do this because reading about block chain technology the history of it, originally it was of culturally and socially revolutionary idea. Since that time about 10 years ago, I feel like it's lost a little bit of that sheen but what you're doing is sort of a throwback to that original idea which is that it belongs to the people. 
ROB: Right. I knew that everybody had this form of capital that was extremely extremely valuable. And I also knew that in order to appropriately monetize this data, individuals had to have ownership over the application of the data. And so the first two months was basically me trying to figure out how to provide individuals with how to give them a vested interest in the applications that are built atop the aggregate data that's provided. The first idea was we would basically issue individual stock in our company and that company would use this data and monetize it and capitalize it and they would have this vested interest not just in the current value of their data but also the future value. Obviously that for millions of people would be extremely difficult to do. It would be almost a logistical nightmare to pull off in. And so that's where cryptocurrency came into the equation through block chain, through smart contracts. There's a way to design a platform and issue this cu