Home Data Media Top 5 things to know about alternative data

Top 5 things to know about alternative data

Alternative data allows businesses to discover trends and financial opportunities without compromising consumer privacy. Tom Merritt explains the five things you need to know about alternative data.

People are expressing concerns about how companies use their data, but companies keep emphasizing that they need your data in order to make money. There’s got to be a better way! Well, maybe there is. Something called alternative data lets companies monetize without having to compromise consumer privacy. Here are five things to know about alternative data.

  1. Alternative data means data about the world, not about people. It has its roots in data used by investors to evaluate a company or investment. Alternative data in that sense is data not found in financial statements, SEC filings, or other data sources coming from the company being evaluated.
  2. Alternative data is safer to keep. Since alternative data comes from somewhere else, not the company or the person, a breach is not a big issue. If you have personal data, you will always be in danger of a breach. 
  3. With alternative data, the data is the product, not the person. Instead of data about people being sold to advertisers, alternative data is sold to companies looking to discover trends and financial opportunities from the data itself. Think shipping trends, crop growth, etc.
  4. People can still contribute alternative data. Instead of handing over address, email, and demographic info, people could have their Internet of Things usage data contributed anonymously to a large dataset. With differential privacy properly applied, it would be much less revealing than current methods.
  5. It won’t work for everything. Just having alternative data doesn’t mean it’s monetizable–the data has to be accessible and valuable to subject matter experts.

No, this won’t stop Facebook, Amazon, and Google from trying to track you, but it might cause some businesses to realize tracking you isn’t the only way to make money.

Source link

Must Read

Highlighting AI Bias

On Monday, IBM made a monumental announcement: the company is getting out of the facial recognition business, citing racial justice concerns and the need...

Artificial Brains Need Sleep Too

 States that resemble sleep-like cycles in simulated neural networks quell the instability that comes with uninterrupted self-learning in artificial analogs of brains.No one can...

Differenciating Bitcoin and Electronic Money

Bitcoin has the largest market share among virtual currencies, and is already being used on a daily basis overseas. Since it is a virtual...

Answering the Woes of Staking Centralization

What if better behavior on blockchains could be encouraged with fun rather than value?Josh Lee and Tony Yun of Chainapsis built a staking demo at the Cross-Chain...

The future of Machine Learning

Machine learning (ML) is the process which enables a computer to perform something that it has not been explicitly told to do. Hence, ML...

Is Automation the solution for rapid scaling in response to the Pandemic

Thanks to the pandemic, the nature of work for federal agencies changed almost overnight. Agencies are now attempting to meet the challenges of a...

Siemens and SparkCognition unveil AI-driven cybersecurity solutions

Today, Siemens and industrial AI-firm, SparkCognition, announced a new cybersecurity solution for industrial control system (ICS) endpoints.DeepArmor Industrial, fortified by Siemens, leverages artificial intelligence (AI) to...

Amazon and Microsoft follow IBM, no longer in Face Recognition business

At least its bandwagon-detection AI still worksMicrosoft said on Thursday it will not sell facial-recognition software to the police in the US until the...

Developing smart contracts with buffered data model

How specifying world state data model with protocol buffers can help in developing smart contracts

Reasons why your AI Project might fail

Here is a common story of how companies trying to adopt AI fail. They work closely with a promising technology vendor. They invest the...
banner image