Parsedata is bringing about the technical know-how for a data trust-stack framework.
After three and a half years as the CTO of NXM Labs, Jay Fallah is abstracting and extending his ideals to the problem of data privacy, governance and compliance based on his research in digital ledgers and cryptography. Jay believes that without creating a trust framework for data, governments will end up imposing their 'one size fits all' solutions as a regulatory and compliance measure.
The essential components of a data-trust
Data and the end users of data are connected through a trusteeship bridge. The stakeholders of the system are the data subjects, users and the trustee. The fiducuary responsibility of the trustee is toward the data subject and the relationship is managed through customized contracts.
Legal and binding contracts from a trustee to specify granular access rights and roles to the data user on the behalf of the data subject. The digital system's technical implementation of the contract is a blockchain smart contract for data dissemination and use enshrining all stakeholder rights.
Blockchain transactions are immutable and time-stamped. An authorative log of data interactions and transactions providing a historical basis for each data transaction adhering to a specific contract. A triple blind mechanism with the trustee at the heart of the legal data trusteeship in case of any conflict.
The concept of trusteeship is well defined in every jurisdiction. Parsedata's data-trust stack facilitates implementation of a trusteeship contract for data interactions between stakeholders. Blockchain provides a solid immutable cryptographical basis that is accepted in any court of law.
Trust the digital ledger
What problem are you solving with digital ledger?
The problem of double spend that is solved using financial versions of blockchain such as Bitcoin is utilized in our version as a utility. The data that is under contract with the trustee and under a trusteeship contract should not be double spent. A user should never gain access to a data source indirectly that is not assigned to them by the trustee directly.
Why blockchain and not a database?
Blockchain is the only data structure that has computing as well an networking capabilities. This means that not only it can execute a smart contract but also knews the network space that each of stakeholders in the contract are occupying. Comparing it to the financial realm, not only you know how much you are spending but also where are you spending it.
Is Parsedata the trustee?
No. Parsedata can not be a trustee since it is not a legal firm. The trustee is a lawyer that needs to enact a trusteeship on a data asset. Parsedata has created the technology the know-how in order to make this process digital and scallable. In other words any layer can act ass a trustees in their jurisdiction and country. Parsedata will make this possible by creating a digital smart contract on blockchain to enact, monitor and assure compliance.
How do you know if you can trust a lawyer with your data?
A trustee has fiduciary responsibility which means that the lawyer's loyalty is toward the data source owner and not the end user. Akin to a nurse or a doctor having a fiduciary responsibility toward the patient and not the pharmaceutical company. Parsedata's system will be the single source of truth on all interactions. As such it allows complete visibility on the time that the contract was exectued and its particulars could be easily audited.
What is being stored on the blockchain?
The only information that is stored on the blockchain is the cryptographic identity of the participants and their public keys. In essence the blockchain is a distributed decentralized public key server allowing participants to link to each other cryptographically. Smart contracts on the chain is the fine grained rights and roles of each data path or file. The trustee as a result is the middle-man between the producer and the consumer of the data and the contracts are the terms of the deal between the two.
Why would be the motivation of the participants in this marketplace?
The three main participants in the smart contract each would have their own reasons for participation. For the producers of data, it levels the playing field in the current asymmetric strugle between individuals and congolamerates. For the trustee the management of the trust will be a source of income. And finally for the data consumer it relieves them of the liability of data governance and compliance with numerous regulaations.