Cookie data has become essential to the digital advertisement industry. Targeting the right audience is a luxury used by global markets, moving trillions of dollars a year, but this luxury is about to come to an end. Enterprises used data aggressively and disregarded asking consent for their users, prompting Regulators to step forward.
People became aware of how cookie data was used to enrich enterprises and were granted the right to enforce data privacy. Although many have nothing to hide, people were willing to use their rights to prove a point. Enabling people to prevent how their cookie data was used got the Digital ad industry concerned with the possible loss of their golden mine, target advertisement. Not to mention that Publishers are quickly finding out that people are unwilling to share data to watch ads. Some publishers decided to adopt a reward system to incentivize their users to watch advertisements. However, unfortunately, the incentives offered only provide a centralized solution for the platform adopting it, and rewarded points have no market value.
We propose turning people's data into an asset that can be traded to gain value in the open market, creating a new decentralized system to incentivize people. NEEbytes makes it possible by using algorithms, API connections and blockchain technology. Publishers can now become mining stations, and data can be converted into a digital asset, known as cryptocurrency. In exchange for accessing users' data, publishers have to add value to the economy by purchasing the digital asset mined by their users through the open market. This method enables people to control their data value as it can be traded in the market. Ultimately, supply and demand will dictate the actual value of data, which many have sought. People will then finally enjoy the wealth their cookie data generates.
For a long time, the tech-ad industry has found in third-party cookies a gold mine. Cookies became the perfect technology to target users with advertisements, enabling the message to be distributed to the right audience. Data then became the most valuable asset of our time. Big corporations started to use data as the basis of their business model. Without people's consent, companies had disregarded people's privacy and went on monetizing the data on their vaults.
It did not take long until whistleblowers and the media focused on such scandals that eventually prompted governments everywhere to take action on their citizens' behalf. Regulations were created to protect people's privacy, but privacy was not the issue of it all. The problem of it all lay in how data was being used. With no control, data was used to increase the wealth of private organizations and the people creating such data had nothing to gain.
With regulations and the ability to block data, more and more people join what can be considered a silent movement that will eventually turn data access impossible or inexistent.
Due to how poorly the situation was handled, marketers will slowly lose access to their target audience. Industries like e-commerce, which are projected to make over 5 trillion dollars in 2021 alone, will face unexpected challenges in reaching their target audience and achieving product sales in the following years. The scarcity of cookie data can also increase the cost of reaching the right audience. Not to mention that ads can easily get lost within the online white noise without targeting advertisements. Controlled user acquisition costs that make it viable for companies to continue to work can increase exponentially and much more than what would cost to enable people to monetize their data contribution to the industry.
Some in the industry have already realized that an incentive needs to be offered to access their users' data. Still, due to the centralized structure of the approach, only the platform adopting it enjoys the benefits of the temporary solution. The reward points have no market value and are only exchangeable for mediocre prizes in stipulated time frames, not providing the opportunity and most of all discouraging people from advocating their rights on other platforms.
To add market value into data and enable it to be a decentralized asset across platforms, we propose a digital currency used as a medium of exchange.
Publishers of any kind can become mining stations and convert their users' data or attention into NEEbytes crypto. Mining stations must agree to share profit with their users by purchasing the currency mined in exchange for having access to data.
We prevent inflation with the addition of a smart contract. The Smart contract also ensures that value-added to the currency will be retained and potentially increase as data continues to be consumed.
Intentionally, as people become in control of their data and enjoy the wealth it generates, people will be able to decide if they want to sell or not their data assets.
Ultimately, the actual value of data will be dictated by the supply and demand available in the open market.
How access to data became a problem
As the say goes,
Earth provides enough to satisfy every man's needs, but not every man's greed, and just like that, data started being used not only for advertisements but also to manipulate people.
The Biggest online organizations managed to get people to lose their trust in the entire system.
In little time cookie data was leaking like it was on a sieve.
Scandals became a routine, and companies such as Facebook, Google, Equifax, to name a few, were making the headlines.
Whistleblowers stepped forward, Regulators took action, and documentaries promoting awareness became a hot topic.
Developers were even sent to learn the physiology behind people's actions and create features to get them addicted to the system.
It was necessary to catch people's attention, and with that, people started to advocate for their rights.
Regulators such as GDPR created a set of stringent regulations to protect the privacy of European citizens and became a model followed by other nations.
Such a regulatory model was a great start to protect people's privacy, but it has since put the tech-ad industry into turmoil and uncertainty.
It is safe to say that privacy is not enough, and new options are necessary to catch up with technological advancements.
If people cannot control and enjoy the wealth their data generates, they will certainly not want to share it, and people will continue to block their data as more options for doing so becomes available.
The importance of data and user consent
Searches, likes, websites visited, and everything we do online is tracked and used to show advertisements we might find relevant.
With no access to cookie crumbles to access people's data, it will become challenging to target the right audience through advertisement. The awkward situation has left Ad networks, Marketers and Publishers on their own, on a mission to find a solution to prevent the tech ad industry from turning itself into crumbles.
Access to users' data has become a necessity, and data has become the feedstock that moves the online industry.
The tech-ad industry is projected to spend over 500 Billion dollars in 2022 alone.
The e-commerce itself for the same year is projected to move over 5.424 Trillion dollars, and it is worth mentioning that most e-commerce customers are found online through target advertisement.
Accessing the right audience without the information provided by data can become a challenge as there are over 4.88 billion internet users around the world today.
Getting the message through the internet by using advertisements without access to essential features like cookie data provides is like shooting a target while blindfolded. With that said, a new approach needs to be taken before target advertisement fades away for good.
People must have the right to monetize, and data can not be given a fixed value. Instead, data should be a decentralized asset traded in the open market by the people creating it. So people themselves can speculate the value their data deserves.
Suppose the option to promote people the right to monetize is not considered. What is left is a monopolized industry in the hands of the organizations that have proven unreliable. They have caused the industry's privacy issues today because they have abused their users' data.
In this case, data will eventually become scarce and prohibited from being used even inside such platforms.
To resolve the issue, some publishers realized that asking permission to show relevant ads would not be enough to access users' data, as people have been using technology to block advertisements themselves. The only and obvious choice was to incentivize their members to share their attention and, of course, data. Some companies have implemented a monetary system to reward their members.
Unfortunately, the reward systems mentioned above are centralized and only benefits the platforms implementing it.
The data issues we face today affect the entire population and businesses that are dependent on it to thrive, such as publishers, ad networks, marketers and e-commerce platforms, to mention a few. Everyone needs a solution to resolve the issue caused by the abuse of data.
The solution needs to be unambiguous and can not discriminate against people based on demographics or platform of choice.
Instead of competition, the solution needs to bring harmony and certainty to the industry.
People producing data should control its value and trade it, just as if it is a feedstock.
The solution - NEEbytes
We propose a digital currency.
By complementing blockchain technology, we achieved a new mining method that enables cookie data, time and attention to be converted into NEEbytes cryptocurrency.
To make the currency accessible to everyone, we changed how traditional mining is performed. Coins are now distributed to people based on their interaction with the system instead of using expensive machinery and excessive electrical power. By doing so, we removed the centralized and costly aspect of mining.
Coins are now mined by users sharing cookie data, time and attention as they create content inside online platforms.
Content is anything that gets users to spend time inside such platforms.
As users add content into mining stations, data is converted into NEEbytes Cryptocurrency and deposited into users' wallets by the NEEbytes server.
Anyone who wants to become a miner must be willing to share their cookie data and enable tracking so the NEEbytes server can locate them inside mining stations to distribute mined coins accordingly. Miners are authenticated before being approved to prevent people and bots from opening multiple accounts and undermining the system.
As members become authenticated, members receive an internal ID# associated with their wallet, to be used as their NEEbytes credentials. The ID# is necessary for members to join mining stations. This is done to ensure privacy and prevent discrimination as mining is performed.
NEEbytes central server holds all registrants and internal wallets to keep the system's integrity and to allocate coins mined to the right members.
Mining can be performed through any publisher or online platform that becomes a mining station.
Connection with the central server is made through API connections, facilitating communication between both parties.
In the suggested ecosystem, every person adding value to online platforms, such as time, data and attention, as they create content has the right to monetize.
Users' sensitive data, if any available, will never be collected by NEEbytes Server through other platforms.
Data is not shared across platforms. Instead, it is kept inside the mining stations storing it and becomes the sole responsibility of the same. Only actions performed inside the mining stations based on the mining agreement are submitted to the central server to prompt NEE coins distribution.
As new users become interested in mining their data, users can be redirected to the NEEbytes central server to be authenticated, preventing mining stations from incurring additional costs beyond sharing profit with their members.
NEEbytes creates an ecosystem where data becomes a medium of exchange and facilitates profit sharing. Mining stations and users enjoy partnerships where profit can be shared without incurring high remittance and payroll fees. Two fees that made this type of profit sharing unfeasible, if not for NEEbytes technology.
As profit share takes place and adds value to the data economy, users can cash out their NEEbytes coins in the open market or use them to store a value.
The solution offers an option to enable people to monetize and provides a solution for all parts involved. So the focus is shifted to reshaping the industry for a new phase where everyone can enjoy the wealth the system creates.
To enable such an ecosystem, we have forked an existing blockchain, a standard practice in the industry when additional changes are needed to achieve a different goal.
In this case, we have used the Ethereum blockchain and added some changes to it, to create the NEEbytes blockchain.
NEEbytes blockchain has been designed as follows:
The hash difficulty has been decreased to enable faster transactions.
Transactions fees were set to the lowest to offset the cost of many transactions per day as coins would have to be distributed to users daily.
The speed of blocks created has also been changed to 5 sec to enable more transactions per second. The more people adopt the technology, the more transactions will need to be performed.
The changes described were done to ensure that the currency can be distributed to many users without restrictions.
Inflation and monopoly are significant concerns for a decentralized currency, and to prevent it from happening, the following has been implemented:
Coin creation has been capped at 11 Billion coins.
People will mine 10B, and 1B will be released at a rate of 10% of coins mined to NEEbytes treasury for the creation of the software.
To avoid fake value from being added into the currency, no ICOs (Initial Coin Offering) was performed, and coins can only be mined by the people who convert their cookie data, time and attention into NEEbytes cryptocurrency inside mining stations.
The value will be added to the coin when traded in the open market (crypto exchanges). Until then, coins are considered to have no value. NEEbytes has been designed this way to display the actual value of data being added based on the supply and demand of the open market.
All 11 Billion coins are locked inside a wallet that the community can monitor through NEEbytes blockchain explorer at https://scan.neenetwork.com, with the following wallet address:
Wallet Address #
The wallet above, containing all coins locked and secure, is responsible for transferring the NEEbytes cryptocurrency to the central server wallet as new coins are mined. The central server wallet receives the information of all coins mined inside mining stations through an API connection and distributes it accordingly to each user's internal wallet. Users can then withdraw their coins to an external wallet.
A smart contract has also been added inside the NEEbytes blockchain to prevent and control inflation.
The smart contract is responsible for destroying coins purchased for profit-sharing. Organizations send coins to be registered inside the blockchain. Coins are then taken out of circulation, minus a hardware fee of 25 % that is deducted and directed to NEEbytes treasury for continued development of the ecosystem.
It is worth mentioning some additional reasons why coins are destroyed:
* As data and attention get consumed while ads are displayed, the only thing left to complete the currency's cycle is to allocate data profit to the people. Once coins have achieved their purpose, coins are then put out of circulation.
* To ensure that value-added into the economy is retained, enabling people to use NEEbytes as a currency to store the value of their data and attention.
Another change to enable the ecosystem was the implementation of the PoA (Proof of Authority) consensus to ensure the integrity of the blockchain is kept under control as the project matures, preventing it from any potential attackers. Traditional miners, using computer power, will potentially be able to join the network in the future as transaction fees increase and the system matures.
Adding value to data
In the NEEbytes ecosystem, the proposed solution enables any platform dependent on users' data to become a mining station, converting users' data, combined with time and attention into NEEbytes cryptocurrency.
Platforms can become a mining station by agreeing to represent their members' interests and sharing profit through the open market (any crypto exchange where the currency is listed).
Mining stations can offer their users as much profit as they like in exchange for people's data. It is up to each individual to make their own choice at the end.
Though platforms can share as much as they like to attract their audience, the NEEbytes protocol provides suggestions.
As data can be considered a feedstock, but it alone has no value, we believe users should be entitled to receive compensation based on how data is used. Since cookie data for mining stations are used for advertisement, we believe users should receive the equivalent of 1 print ad, which can be displayed on the first page as users log in. Two ads would fit perfectly into the screen.
The suggested value for two ads printed is $0.001 per day. However, it can also be calculated as the average of all ads displayed on the platform. The value per CPM (cost per mile - 1000 ads) changes according to the networks providing it and the region displayed. This calculation provides a fair margin for mining stations to continue accessing data and monetize additional ads.
The suggestion allows Mining Stations to add value to users' data by converting fiat revenue into NEEbytes cryptocurrency enabling people to discover how much data is worth when traded.
Ultimately supply and demand will take care of the rest.
To put the suggested numbers into perspective, if a company is willing to pay 0.001 for their users' data, this means a platform would pay $0.365 a year per user for their data.
From the users' point of view, the suggested price might seem insignificant, but it should not be confused with the potential value of data when traded in the market. The suggested price and profit shared by Mining Stations will back the new economy created by data. The actual value will surface as trades are performed, more platforms adopt the technology, and more people join the cause.
From the point of view of Mining Stations, the cost per user's data can be compared with CAC (customer acquisition cost). However, in this case, the value shared with users for their data does not even compare to how much could increase to acquire users if cookie data and target advertisements fade away. Also, Mining stations would only share profit and pay for users' data if they would use the platform to mine their data (NEEbytes), which means that mining stations would also be monetized.
The cost for users' data can also be split by all parts benefiting from such a system. The publisher (mining stations with ad space available), ad networks (deploying ads into mining stations) and marketers (targeting ads to their audience), making the additional cost seem ever more reasonable.
The technology provided enables the tech-ad industry to promote new best practices and regain trust.
Since projecting value in an open market is practically impossible, not to mention highly speculative. We created a test platform, called NEEchannel, so our users' can replicate their online social activities and add value to their data by mining NEEbytes cryptocurrency.
The following will overview the market size dependent on people's attention and willingness to share data.
The more adopters, the more value will be added to data traded in the market.
Please consider the following:
There are over 4.66 Billion internet users around the world. Facebook alone has over 2 billion users sharing data daily.
There are over 1.88 Billion Websites online, 600 Million of them being Blogs and depending on advertisements to monetize.
There are around 3.48 Million Android apps on the Google play store alone and about 2.22 Million IOS apps.
Digital ads experts estimate most Americans are exposed to around 4,000 to 10,000 ads each day.
The above only shows the industry's size-dependent on cookie data and attention to thrive.
To prove data has value for each person as an individual, NEEbytes has created NEEchannel, as a social media to enable users to spend time and attention adding data into the platform. The goal of NEEchannel is to empower users with the value their data creates.
This paper will consider NEEchannel as the platform adding value to people's data. Although NEEchannel is set to share 50% of its profit with users, in the following projection, we will consider NEEchannel to be sharing only what is suggested by the NEEbytes ecosystem ($0.001 per user per day).
The projection will show how much value NEEchannel can add to data for the next three years, as suggested by the NEEbytes protocol.
The table below has been created based on the following considerations:
user acquisition at a 10% weekly growth rate, starting week one with 10 users,
A user retention rate of 50%,
$0.001 per user per day for their cookie data (the equivalent of 1 print ad per day as suggested by NEEbytes ecosystem)
In the scenario below, you can observe that at the end of year three, NEEchanel has the potential to add over $5 Million into NEEbytes currency, adding value to users' data.
We'll go a step further and highlight the potential for adding user data if other platforms join the ecosystem and become mining stations.
Consider the following:
100,000 platforms adopting our technology
10,000 daily users using each platform
The NEEbytes ecosystem adds $0.001 per user per day, for a total of $0.365 per user per year.
In the above scenario,
The total amount added to the NEE currency each year is over $365 Million. (100,000 x 10,000 x $0.001 x 365)
Considering that coins are removed from circulation to avoid inflation and retain value to the currency, we are left with additional speculative value to be added to the data as currency.
We will let you make your assumptions about how much data as NEEcoins could be worth in the next few years after the system is implemented and adopted, as the value can increase exponentially depending on the current supply in the market.
Mining stations can be any platform that depends on users' data to earn money.
Mining stations allow users to monetize through the NEEbytes ecosystem and benefit from knowing that their users are genuine as everyone is authenticated.
Online platforms (mining stations) must agree to share their monthly ad profit.
The profit-sharing is recorded on the blockchain, making publishers accountable as blockchain data is public and available for users to view.
Mining stations can choose the mining method they want to enable on their platform, as long as data is shared by performing native activities within such platforms and does not require unreasonable efforts from users.
All mining stations are considered equal, and NEEbytes algorithms communicate with the NEEbytes server when mining is performed. The server will then allocate to the user's wallet the equivalent of 0.001 NEE per day deposited into the user's wallet at the end of the day and at any time after 0:00 UTC.
It is solely up to the mining station to decide how much profit they want to share with their users. While NEEbytes does suggest a minimum goal that should be achieved, NEEbytes does not enforce it. As a result, users will decide whether they want to share their cookie data or use such a platform as their preferred mining station. Profit-sharing is an incentive to promote user loyalty and data sharing.
Mining stations should allow users to log in using NEEbytes credentials or add NEEbytes ID to users' account settings. This is done so that the NEEbytes server can properly distribute the mined coins.
Mining starts after the user is authenticated through the NEEbytes server. Users start receiving 0.001 NEE coins deposited into their wallets daily without needing to perform any further transactions. At first, authentication takes place via an SMS confirmation code. As the platform matures, different authentication methods such as KYC verification will be implemented to ensure the integrity of the chain. Users should be notified via NEEchannel if such procedures have changed so that they can immediately update their profile to avoid mining disruptions.
As mining stations join the ecosystem, users can mine an additional 0.001 NEE per mining station per year. To mine coins, users must interact with the local functions of the mining stations, which prompt the NEEbytes server to release the mined coins and reward the daily coin pool.
NEEbytes servers maintain different daily pools of NEE tokens to be distributed among users performing any activity on mining stations.
At the time of publication of this document, two pools are distributing NEEcoins.
Pool 1: 1,000 coins for 10% of the best content added with the most likes on NEEchannel.
Pool 2: 5,000 NEE coins distributed according to users' hash power. Everyone starts with a hash power, and it can be increased for every two new friends users refer to the ecosystem. New users must sign up with a referral code and authenticate before the referrer is given extra hash power.
Ideally, the earlier users join the ecosystem, the more access they will have to NEE coins.
NEEchannel: a mining station to connect the Community
NEEchannel is the first station to add value to the NEEbytes ecosystem and does it by sharing 50% of all revenue generated through the sale of ad space.
It was created to:
connect the community,
enable interaction between users
share news about the NEEbytes ecosystem
Facilitate access to the latest cryptocurrency news and insights, all aggregated inside the "Crypto Feed" page.
Until NEEbytes project matures, NEEchannel will be used to:
facilitate users' authentication process
hold users' wallets to provide access to their NEE coins mined through the NEEbytes ecosystem.
NEEchannel is the first step of NEEbytes vision, and it will show that data has value and that if publishers do empower people, they can once again bring harmony to the digital ad industry.
The benefits of the NEEbytes ecosystem
People can finally enjoy some of the wealth their data and attention produce.
Publisher and Ad Networks can promote amends by sharing profit with users in exchange for their attention and cookie data, preventing target advertisements from fading away.
Advertisers and Marketers will be sure ads are being displayed to real people and not fake accounts or bots trolling the system. It makes it easier to avoid traditional scams, where bots perform fake clicks.
NEEbytes ensures that all parts involved in the digital ad industry have their interest considered. We do this by empowering people.
Data privacy has been abused, and people's trust was betrayed for profit.
Regulators were forced to step in and stop the aggressive marketing strategies designed to consume data for target advertisement.
Now, people are unwilling to share data and can not use it without consent. In fact, people are currently looking for ways to block their data. In most cases, without even knowing for what cookie data is used.
Providing options to empower people with the wealth their data generates will prevent further damage to the system.
NEEbytes has designed that option, and it provides a decentralized solution to enable a partnership between people and all parts involved, without borders or other demographic's discrimination.
Every person, independently of how they contribute to such platforms, should have the ability to monetize if exposed to the advertisement.
Since data and attention are abstract assets, the NEEbytes ecosystem facilitates its conversion into a digital currency, so people can transfer authority of it and trade it in the open market.
Publishers (any online platform), depending on the advertisement to monetize, will be able to share profit without incurring high remittance fees in the process as blockchain eliminates third parties that would be necessary to perform the transaction.
With the NEEbytes ecosystem, publishers can build a new relationship with their users based on a partnership where both interests are considered and addressed.
NEEbytes philosophy is to provide options to prevent the digital ads industry from going into crises and, most of all, empower people what should have been obvious from the start.
People must have the right to monetize their data!
- What is NEEbytes?
NEEbytes is the central server, the ecosystem, the project, the business name and the fraction of NEE coins.
- NEE is the currency that enables people to monetize their data and also the symbol for the NEEbytes project.
- What are bytes in the context of the NEEbytes ecosystem?
Bytes from data bytes are the smallest units of the NEE coin 1/18.
1 NEE coins has 1,000,000,000,000,000,000 NEEbytes
- For this paper, cookie data and attention are used interchangeably. In the NEEbytes ecosystem, advertisements add value to data, and data only has value because people are at the other end of the screen watching it, hence providing attention. Currently, Google is the only Browser that controls and has third-party cookies available but is most likely discontinuing access to cookies in 2022. If this happens, NEEbytes will reinstate third-party cookies by creating the NEEbytes browser. NEE coins will be mined in exchange for users' attention until then.
- Open markets are cryptocurrency exchanges, where people can trade their currency for the value they think is fair.
- Content is considered anything users add into platforms and used by the same to monetize, such as attention, time or cookie data. Content is usually abstract, and in the NEEbytes ecosystem, it is converted into NEEbytes digital assets (NEE cryptocurrency) to enable the user to monetize from it too.
* Data Scandals:
The social dilemma (The technology that connects us - Also monetizes us): https://www.thesocialdilemma.com
What You Don’t Know About How Facebook Uses Your Data: https://www.nytimes.com/2018/04/11/technology/facebook-privacy-hearings.html
Facebook allegedly offered advertisers special access to users’ data and activities, according to documents released by British lawmakers: https://www.washingtonpost.com/technology/2018/12/05/facebook-allegedly-offered-advertisers-special-access-users-data-activities-according-documents-released-by-british-lawmakers/
Mark Zuckerberg leveraged Facebook user data to fight rivals and help friends, leaked documents show: https://www.nbcnews.com/tech/social-media/mark-zuckerberg-leveraged-facebook-user-data-fight-rivals-help-friends-n994706
The Cambridge Analytica scandal changed the world – but it didn't change Facebook: https://www.theguardian.com/technology/2019/mar/17/the-cambridge-analytica-scandal-changed-the-world-but-it-didnt-change-facebook
Internal Emails Shine Light On Facebook's Approach to Sharing and Selling Data With Developers ($0.10 per user per year to try out): https://www.adweek.com/performance-marketing/internal-emails-shine-light-on-facebooks-approach-to-sharing-and-selling-data-with-developers/
Google Accused of Selling Users’ Personal Data to Ad Companies: https://www.thedailybeast.com/google-accused-of-selling-users-personal-data-to-ad-companies
Rethinking Privacy For The AI Era: https://www.forbes.com/sites/insights-intelai/2019/03/27/rethinking-privacy-for-the-ai-era/?sh=163005c77f0a
What consumers really think about sharing their personal information: https://www2.deloitte.com/us/en/insights/industry/retail-distribution/sharing-personal-information-consumer-privacy-concerns.html
How much is your data worth?: https://qz.com/1655610/how-can-you-measure-the-worth-of-your-data/
General Data Protection Regulation (GDPR): https://gdpr-info.eu/chapter-1/
* Third Party Cookies and Mobile Tracking:
What Are Third-Party Internet Cookies, and Why Is Google Killing Them?: https://www.vice.com/en/article/5dmgkz/what-are-third-party-internet-cookies-and-why-is-google-killing-them
The Death of the Third-Party Cookie: What Marketers Need to Know About Google's Looming Privacy Pivots: https://blog.hubspot.com/marketing/third-party-cookie-phase-out
Publishers Brace for Impact From Apple’s New Privacy Controls: https://www.wsj.com/articles/publishers-brace-for-impact-from-apples-new-privacy-controls-11598565920
* Blockchain Technology
Bitcoin White Paper: https://bitcoin.org/bitcoin.pdf
Ethereum White Paper: https://ethereum.org/en/whitepaper/