Browse Prior Art Database

Distributed Privacy Trading System Using Virtual Currency

IP.com Disclosure Number: IPCOM000241367D
Publication Date: 2015-Apr-21
Document File: 4 page(s) / 36K

Publishing Venue

The IP.com Prior Art Database

Abstract

Disclosed is a system that offers user control and corporate transparency concerning the collection, merchandizing, and monetization of consumer data. The proposed system and method provide a distributed set of servers hosted by sellers and buyers that facilitate the collection, tracking, value assignment, and exchange of consumer data.

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Distributed Privacy Trading System Using Virtual Currency

Corporations collect and share consumers' private information about a shopping activity through a web browser, mobile application, credit card, and other methods of interacting with on-line applications and services. Consumers do not know how corporations merchandize and monetize the collected information.

A system is needed that offers the user not only information about, but also control over, how personal information is collected and distributed. Users need to be able to manage the monetization of personal data, including data tracking mechanisms so that consumers are aware of which data providers (i.e. those that consolidate and derive new information about individuals) use private information. In addition, a system is needed that prevents one single entity from dominating the commercial exchange of consumer data. Such a system needs to provide distributed tracking, distributed monetization, and distributed negotiation for value of information packets across multiple entities; no single locus of control can interfere with the free trading of information for monetary value.

Finally, because private shopping information about an individual currently is not of major value, it is hard to devise a system that can properly remunerate individuals for associated private information; the value of individual payment transaction may be several times more than the value of the information itself. However, virtual currencies do not have this issue, as micro payments using virtual currencies and performed through electronic means can collect and distribute very small valued monetary transactions.

To addresses these challenges, the proposed system and method provide a distributed set of servers hosted by sellers and buyers. Individuals can capture, encode to keep or personally remove identifying information, and encrypt the personal information such that it is (a) uniquely identifiable through hashing, and (b) is only accessible by companies that have access to browse, use, or derive data from the encrypted information (e.g., browsing histories, bank account information). Additionally, the system facilitates concurrent trading of this information with multiple interested parties in real-time, arriving at a price using a virtual currency for the traded information. After arriving at a price, the solution enables the exchange of digital coin(s) (i.e. virtual currency) for the personal information with the buying entity. The solution also enables the tracking of the personal information packets as the personal information is repeatedly traded through a multitude of transactions.

The novel system comprises a computer system that supports the unique identification of a set of privacy information data to be traded and supports trading and tracking of the traded information. The computer system has two main functional roles: one role for firm(s) interested in acquiring and reselling private...