The problem with data silos

And the benefits of going “data solo.”

noun

silo, a system, process, department, etc. that operates in isolation from others.

“Operating in isolation.” Sometimes that’s a good thing. We wouldn’t, for instance, want our grain co-mingling with coal. But when it comes to information, the traditional model of a proprietary data silo is outmoded and outdated. Data silos — usually manifested in the form of centralized databases (CDBs) — are vulnerable to compromising attacks. Further, the data stored in these proprietary silos is just that: Proprietary. In most cases, only the owner has access to the information and the ability to leverage it for analysis, profit, whatever. But for the types of data most of us are interested in — our own personal, financial, and transactional data — that’s a one-sided value proposition. And that’s a problem.

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Centralization: The central problem.

For most modern tech companies, the CDB seems like a no-brainer in terms of smart storage. Data preservation, physical security, reduced costs, easier maintenance — all seem to be benefits of having your proprietary business data in a “single” place. That data may be backed up in multiple offsite locations, but it’s still fundamentally a silo. But “benefit” is the key word here. While there may be perceived benefits for the owner of the aggregated data, there’s certainly no benefit to the average customer whose data is stored in the CDB. Because in most cases, the person who created that data doesn’t own it. He/she can’t access it. Can’t use it. And some version of it has to be entered and re-entered into every CDB for every company or business the customer wants to engage with.

But there are increasingly more reasons why CDBs are not necessarily the best model for businesses either. They’re vulnerable to hacking and data breaches of all kinds. They’re expensive to implement and maintain. They’re susceptible to “single point of failure” scenarios. And the average customer/user is becoming more savvy about sharing their information freely and honestly.

Decentralization: A distributed solution.

Consumers will certainly reap the benefits, but the financial considerations of corporations will most likely be the primary driver towards a quantum shift to decentralization. The research group IDC predicts that businesses will create and manage 60% of the world’s data by 2025. And we’re on course to generate 163 zettabytes of data annually by 2025. So while we might be getting more wary of sharing information, we’re also growing more and more dependent on it. But that dependency is a huge liability for the companies who store our data. Aggregated data — analyzed, crunched, and parsed for our consumption and use — is as much a part of modern life in developed countries as is the expectation of available food and shelter. Companies who want to unburden themselves from the legal and financial shackles of data vulnerability are looking for alternatives.

So the move toward decentralization — facilitated by the blockchain — will be driven by market forces. But we the consumers have a say in it as well. Our desire to regain what privacy we can is another important factor in the impending shift. We want to own our own data. To rid ourselves of the frustrations and inefficiencies that centralized data silos enforce on us. We want control. And we want it now.

You: The data solo.

Which leads us (as it always does) to Nuggets. Our vision of a blockchain- and biometric-enabled e-commerce platform delivers on the promise that decentralization offers. For businesses, it’s the end of catastrophic data breaches and expensive regulatory compliance. For the average consumer, It’s the end of multiple username and password combinations. It’s the end of our personal and financial data living in countless proprietary, centralized data silos. It’s the end of our transactional data being used for profit — at our expense. And it’s the end of worrying about personal data security. There will be no central repository — or repositories — for hackers to raid and pillage. Just you, your data, and your Nuggets, transacting freely in the world, free from worry, free from exploitation. It’s a journey from silo to solo. Let’s make the journey together, shall we?

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Until next time…