bowaggoner
Joined 9 years ago
Joined 9 years ago
The idea is that the smart contract is a learning algorithm, and people can donate data to a public repository stored on a blockchain. The learned model is publicly available for everyone. People can also receive incentives for donating data in some implementations.
Similar, there are cases like "What is the capital of the state of New York?" A Schelling-point answer might easily be New York City, even though the correct answer is Albany. There's research on this stuff in the "peer prediction" a.k.a. "information elicitation without verification" literature, e.g. Prelec, Seung, McCoy 2017: https://marketing.wharton.upenn.edu/wp-content/uploads/2017/...
Instead, the problem is they still require an oracle for the actual event outcome. That is, everyone is betting on some event, but once it happens, an oracle is needed to tell the market what the actual outcome was. So they don't solve the oracle problem. They're another application that can make use of oracles.
We did discuss this and felt that a very deep dive would be needed. (A) It's not an objective no-brainer exactly what behavior you want to disincentivize. (B) The economic impacts/consequences could be huge, so the tradeoff needs to be carefully considered.
One example is Google Maps. Right now it has privacy drawbacks, but it also generates a lot of utility for a lot of people and is relatively freely accessible for individuals. You'd want to be careful about screwing that up. For example, incentivizing Google to switch to a paid access model.
I guess part of what this EFF article is saying is: these decisions are better treated as part of privacy law / human rights, rather than economics...I'd be interested to hear your thoughts!
Last year I was part of a working group on a data dividend proposal for the state of California, which you can read about at https://www.datadividends.org/ .
Our conclusions led us much closer to the spirit of this EFF article than the term "data dividends" might suggest. We recommended against any kind of personalized payments. We considered a small universal basic income funded by a "data tax", but because of the small amount (as mentioned by the EFF), we focused on use of a data tax to fund public projects and initiatives aimed at redistributing the benefits of data more equitably.
We mostly stayed away from recommending privacy or data ownership regulation because (a) California had recently passed the CCPA and (b) this question seemed outside of our mandate, but I agree that the two should be considered together.
It's designed to be accessible to anyone who has never heard of a prediction market. In fact, I would love to hear if you think this is a good prediction-market tutorial.