The project is creating the world’s largest location data protocol powered by crypto and decentralized technologies.
Whether you stroll around a shopping mall, enjoy a cappuccino in a café, or drive to school to pick up your kids after classes, you will have a smartphone or a wearable device on you. All your movements are tracked, with the data carefully analyzed and sold to marketers and researchers eager to know where to reach you with their next irresistible offer. Real estate agents, financial companies, artificial intelligence (AI) developers and even urban planners are also interested in your location data. Demand is growing rapidly, stimulating the inflow of data suppliers.
Location data is a valuable piece of marketing information, so it is no wonder that this market segment has been growing strongly over the past five years. It is forecast to reach $16 billion, doubling from $8 billion in 2016. The rising number of internet-connected personal devices lowers entry barrier and makes location data gathering much easier.
However, the market remains notoriously inefficient, plagued by centralization and the dominance of large data exchanges. They are supposed to facilitate location data trading but instead make it less transparent in terms of quality, ownership, usage, and privacy compliance. On top of that, hefty commissions – 30% to 50% on average – reduce net income both for suppliers and buyers. These inefficiencies slow down location data adoption by the industries that could benefit from using it.
Singapore-based Fysical Technologies has come up with a solution for eliminating the obstacle mentioned above by creating infrastructure for transparent and fully compliant big data exchange with a primary focus on human location and movements. Instead of centralized and closed systems, Fysical is offering a transparent peer-to-peer blockchain protocol. Due to the decentralized infrastructure, data suppliers will monetize their information while retaining full control and ownership, and buyers will get cheap access to reliable data.
Fysical is a working project that publishes over 15 data points from more than 10 million devices on monthly bases. Its use cases include research and analysis of foot walk data from the US presidential inauguration and the Women’s March in January 2017.
How does it work?
Fysical offers a transition from user data collected in a digital world to the offline universe, tracking consumer behavior in real life. The ecosystem consists of three layers:
- The protocol layer is the foundation for a transparent and compliant exchange for location data, including foot traffic sensor readings, store visit information, and commute routes.
- The marketplace layer is used to create brokerages based on Fysical’s protocol.
- The application layer encompasses thousands of apps and use cases where location data is applied.
Data suppliers provide information to Fysical, benefiting from a transparent monetization process and full control over data use. Buyers purchase data from Fysical, enjoying thoroughly audited and verified source and quality. Both parties transact using the FYS token.
Fysical pays great attention to protecting the rights and interests of both data consumers and data suppliers, identifying privacy breaches as one of the main problems of the current location data market.
“In the decentralized space, there has only been one model to allow consumers to own their data and that’s a consumer-first model, where companies provide a mobile app to consumers which allows consumers to make money from their data,” Fysical co-founder Ben Smith explains.
“Most companies that offer such an app tout that they’re allowing consumers to finally claim their data and take it back from the data giants, but that’s not actually happening. Rather, these apps just create more data to sell with a consumer monetary kick-back, and they do nothing to allow consumers to claim or own the data generated from the thousands of other apps and websites that still collect and sell their data. Fysical allows users to efficiently claim all of this data downstream at the aggregate marketplace level where it’s pooled, instead of just from one of the many sources creating it upstream.”
Fysical ICO details
The company starts the pre-sale round on June 18. It will be live through June 30 with a bonus of 10%. The main sale will run from Julу 16 to July 21, or until the hard cap of 21,176 ETH is reached. There will be 400 million ERC20-compliant FYS tokens available for sale, which is 40% of the total supply. One ETH will buy 18,800 FYS tokens, with the minimum contribution set at 5 ETH for the pre-sale and 0.1 ETH for the main sale. Maximum investment is limited to 250 ETH for all rounds.